Posts Tagged ‘Forbes Boost Your Business’

Forbes Boost Your Business Awards

Tuesday, December 22nd, 2009
Forbes Entrepreneur Editor Brett Nelson

Forbes Entrepreneur Editor Brett Nelson

Forbes hosted a reception at the Forbes Gallery to celebrate the winner of its “Boost Your Business” competition. The winner receives a $100,000 capital infusion, welcome to any start-up, but particularly in this environment where funding is scarce. Entrepreneur editor Brett Nelson cited the gloomy statistics released in the annual survey of members of the National Venture Capital Association. Most venture capitalists reported a decrease in seed and early-stage funding with fewer resources shifting to more established companies seeking follow-on funding to scale for growth. The study also found that among venture capitalists:

  • 87% expect that funds raised in 2010 will be on average smaller than in previous years.
  • 48% predict more foreign LPs investing in U.S. venture funds in the coming year.
  • 90% predict that the number of venture capital firms will decline over the next five years.
  • 72% expect the venture capital industry to contract between 1 percent and 30 percent.

Of course, the implications for the VC industry are particularly gloomy for the three to five year horizon when, having skipped a generation of early seed funding, there will be a cohort gap seeking follow-on funding in the future. It is sobering to consider the consequences for our economic growth with such short-sighted investments. Notwithstanding the tough funding environment, the evening was a celebration of entrepreneurship and thanks to Forbes for their hospitality.