Insights: Venture Capital: The Times, They Are A-Changin'

Story by Jeff Grabow


For our Insights and Opinions section today--where we feature the thoughts and opinions of the local high tech community--we have an article from Jeff Grabow, of Ernst & Young, talking about the changing world of venture capital:

The VC environment isn't what it used to be. Guess what? That's not a bad thing. The venture environment has evolved and understanding three key trends in that evolution can be critical to getting your company funded.

First, VC isn't strictly about start-up companies anymore. Funding data reveals that more companies get VC investments at the revenue generation stage and profitable stages than at the start up or product development stage. Investee companies are being supported by VCs longer, too, well into revenue generation and profitability. Why? It's vastly cheaper to start a business today than it was 10 or 20 years ago, giving angel investors the ability to play a larger role today in getting companies off the ground. (Continued...)

Read the rest of Jeff's article, Venture Capital: The Times, They Are-A-Changin'.

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