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Venture Capital’s Struggle

Well, the VC business just isn’t what it was.  Blame Sarbanes-Oxley for making IPO exits harder.  Blame the popularity of VC (and private equity funding) which is now attracting ever-larger tranches of financing.  Blame the difficult economy for making acquisition-exits harder.  And, I guess, blame an industry that is heading into maturity.

I thought the round up offered by Knowledge At Wharton on the topic was pretty good.

What does an economy without a vibrant VC market hold in store?  Well, for one thing, far fewer big payouts to risk-taking entrepreneurs and the financiers who support them.  And possibly a decline in the competitiveness of economies that had come to take entrepreneurial startup growth for granted. 

Definitely a challenge to taken for granted assumptions about the workings of an entrepreneur-friendly economy. 

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