Great Venture Capital Opportunities in 2010 for Those Who Can Spot Them

February 9, 2010

Recently, the Business school at Pepperdine University issued it 2010 Private Capital Markets Project. The Venture Capital Survey Info section provided interesting statistics compiled by surveying 111 venture capital firms:
35.1% of the companies report to have two funds, 25.7% have three funds, and 21.6% have only one fund. 
The fund sizes for 35.5% of the companies are in the ranges of $5M to $50M, for 25.4% they are between $50M and $100M, and for 19.7% they are between $100M and $200M.It is interesting to note that within the last six months about 60% of the surveyed companies have engaged in 2 or less venture capital investments, where 27.5% have none. The conservativeness of the venture capital funding is also supported by the Investment Characteristics statistics which finds that although more than 45% of the surveyed VCs find overall increase in the business plans received and the “high-quality” investment prospects, only 4.5% of the business plans have actually been funded.
Also, while 70.5% of the respondents believe in the increase of the demand for venture capital funding during 2010, 59% or them envision only 3 or less investments within the next 12 months. The expectation for the majority of the investment concentration is believed to shift from the software industry to the clean tech industry.While it looks like 2010 is going to be another conservative year for venture capital industry, it seems like a lot of good business plans will be left on the table, which will open great opportunities for those who can appreciate them. 

President<br>OnLighten

Konstantin is the President at OnLighten, which specializes in Customer Relationship Management (CRM) and business systems strategy, implementation, integration, automation, and training. He was previously an Analyst at OpenView.