Venture Capital - VC investment in three major new trend in the United States
Venture Capital three new trends: the increasing scale of venture capital, investment objectives turning to established companies, as well as pay more attention to outside the United States market.
1. Venture capital increasingly large scale According to VentureOne data published in 2006, the financing of the two funds were the largest from Oak Investment Partners and New Enterprise Associates, amount of financing were 2.56 billion U.S. dollars and 25 billion dollars. Overall, the 2006 financing of the scale of 5 billion dollars to one billion U.S. dollars of funds between the proportion of all funds of 12.1% over the 2005 doubled; financing scale for more than one billion U.S. dollars of funds at all the proportion of the fund was 4.4%, much higher than in 2005, 1.6%.
Venture One analyst about Shengeluofu (Josh Grove) said: "The growing scale of these funds, some small-scale fund gradually be eliminated. Some people even believe that those who invest in early stage companies mainly small-scale The Fund will form a 'vacuum'. "financing in 2006 the scale of 100 million U.S. dollars to fund the following percentage of all funds 34%, well below 2002's 71%. Medium-sized fund in 2006 amounted to 200.5 million U.S. dollars on average financing, while the 2004 was only 153 million.
This trend resulted in what kind of results? Some venture capitalists have begun to imitate private equity investor in established companies looking for high-growth opportunities, rather than as in the past to start from the bottom to help the start-up companies to recruit management, promotional products, and create a market. Venrock Associates Bryan Roberts, managing director (Bryan Roberts), said: "Some funds are actually rooted in a bubble, their business model more like a low-risk securities investment, rather than risk investment. If this situation continues, innovation will be inhibited. "
2. Small-scale fund exclusion In a sense, the emergence of this trend with the sluggish IPO market, as well as technology stocks continued to have a much lower relationship. With this same Venture capital, this also shows the strong trend in private capital investment in 2006, private capital investment totaling 660 billion U.S. dollars. At the same time making money in private equity, venture capital company would naturally prefer to be outdone. In addition to Oak Investment Partners and New Enterprise Associates, another three top five funds from Polaris Venture Partners, VantagePoint Venture Partners, and Sequoia Capital, financing, the amount of one billion U.S. dollars, respectively, 10 billion dollars and 861.5 million the United States yuan.
Go hand in hand in the top five venture capital firm, while others preached the size of the company's financing of the downward trend. For example, Charles River Ventures in 2004 financed 250 million U.S. dollars, down from 2001 to 450 million U.S. dollars; North Bridge Venture Partners in 2005 financed 500 million U.S. dollars, down from 2001 to 825 million U.S. dollars; US Venture Partners Finance Corporation in 2004 600 million U.S. dollars, down from 2001 to 10 billion U.S. dollars. Fund the expansion of the size of the increase also means that investment is currently one of the largest enterprises to the amount of venture capital is usually 20 million U.S. dollars to 5,000 million dollars, far higher than the previous one million U.S. dollars to 10 million U.S. dollars.
3. Investment objectives of the shift overseas
This trend does not mean that new companies can not attract investment. According to VentureOne data published in 2006, the emerging field of information services company, also based on user-generated content as the main business of the company received a total of 24 billion dollars in venture capital, compared to 2005 increased 27%. However, it is in the start-up companies is very difficult to find a winner, but a growing number of venture capital companies turning to outside the United States market. Even those who have dedicated funds for early stage technology companies, their investment scope is no longer limited to Silicon Valley.
Draper Fisher Jurvetson2007 years, the total amount of capital under management to 40 billion U.S. dollars, but includes 19 funds, with offices throughout many parts of Boston and Beijing. Under normal circumstances, regional manager of the company headquarters than those managers more easily find investment opportunities. Over the past two years, Draper Fisher Jurvetson of the most successful investments in the four pens, three pens from outside the United States market, investments are Baidu, eBay's Skype departments, as well as Focus Media.
4. Medium-sized living space is limited funds
Venture capital firm in China and India are making every effort to find those who lack funds, a more mature, but promising company. In this process, the medium-sized funds caught in a dilemma. Compared with the small-scale funds, they are not flexible enough; and large-scale funds, compared with their strength and not a small gap. For this reason, pension funds and donations to universities often choose to fund a large-scale or small-scale funds, medium-sized funds, no one is interested. In any case, the U.S. start-up companies to obtain the total amount of venture capital is still an upward trend. According to data released by Ernst & Young and VentureOne, 2006, U.S. companies received a total of 25.75 billion U.S. dollars venture capital, compared to 2005 increased 8%. Among them, mobile service provider Amp'd Mobile2007 financial year in April 150 million U.S. dollars, investors, including Intel and Qualcomm; online advertising agency Spot Runner2008 years in October received 40 million U.S. dollars venture capital investors including CBS and the Interpublic and so on.
More informations about Venture Capital:
Venture Capital -VC Introduction===>
Venture capitalist Venture capitalist can be roughly divided into the following four categories==>
What is a Venture Firm? ===>
