Venture Capital's Sharp Funding Drop Raises Start-Up Eyebrows

Peter Delevett
(photo: Twitter.com)

Technological innovation's lifeblood includes funding. Typically, a significant source of that revenue comes from venture capital sources. The funding tends to come from institutional firms or VC firms who work with wealthy individual investors. These groups' financial commitments offer a very useful window into the "smart money's" perceived perspective on high tech's growth prospects.

According to a story by the excellent Mercury News reporter Peter Delevett, the view from VC is not rosy at all. Venture capital firms, he noted, invested twelve percent less than in the prior quarter. "That's a troubling sign," Delevett wrote, "considering that 2012 was the first time since the Great Recession that venture capital investment fell year over year."

In the absence of appealing venture capital opportunities, where will this "smart money" go? Inquiring minds would like to know.