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July 18, 2006

Diminishing Ardor for New Venture Funds

There is a steep decline in the percentage of new venture firms being financed. While that makes oodles of sense given the woeful recent performance of the asset class, it is still worth noting -- even if failing first-tier funds can still get funding on brand name alone.
Follow-on financing of venture capital firms
[via PRNewswire]

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Comments

Paul:

I think you got this backwards. I read the same press release with the same data. It appears the ratio you plotted was FIRST TIME funds, not Follow-On. This means that it is harder to raise funds for a new VC firm, not that LPs are backing away from existing firms. In fact, quite the opposite.

PR

Ugh, yr rght Peter. Will fix ....