VCs Cautious in new Funding Schemes

If you have an old tie or skirt, chances are that tie or skirt will be back in style one day soon. The same holds true for venture capitalists who fund businesses. These angels are finding that they are returning to the old days of funding companies with a solid infrastructure versus the latest dot.com craze.

The rules certainly have changed over the last six months--mostly since technology stocks took the famous nose-dive last spring. VCs were notorious for funding start-ups that didn't even have a business plan, and as a result, are much more cautious now than they used to be.

However, technology still is 'in' for investors. According to a survey of second quarter 2000 investments by PricewaterhouseCoopers, VCs are most interested in software ($4.7 billion), telecommunications ($4.4 billion), business services ($3,7 billion), new media ($1.4 billion), and networking and equipment ($1.2 billion).

This isn't to say that every investment failed, because that's certainly not the case. Along with funding comes the risk associated with the investment, and VCs are certainly one brand that likes to take a risk. Sometimes the risk pays off, and sometimes it doesn't.

You may like these other stories...

Individuals interested in reviewing the proposed 2015 US Generally Accepted Accounting Principles (GAAP) taxonomy from the Financial Accounting Standards Board (FASB) have until October 31 to submit their written comments....
Ernst & Young 2013 audit deficiency rate 49%, regulators sayMichael Rapoport of the Wall Street Journal reported on Thursday that the Public Company Accounting Oversight Board (PCAOB) found deficiencies in 28 of the...
PwC must face $1 billion lawsuit over MF Global adviceA federal judge on Wednesday ordered PricewaterhouseCoopers (PwC) to face a $1 billion lawsuit claiming that its bad accounting advice was a substantial cause of the...

Already a member? log in here.

Upcoming CPE Webinars

Sep 9
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.
Sep 10
Transfer your knowledge and experience to prepare your team for the challenges and opportunities of an accounting career.
Sep 11
This webcast will include discussions of commonly-applicable Clarified Auditing Standards for audits of non-public, non-governmental entities.
Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.