Sunday, September 24, 2006

"Structuring Venture Capital Funds" by Gunderson Detmer speakers

IPOs aren't as popular as they used to be as an exit strategy for venture capital. Instead, the companies that they invest in are being snapped up by strategic buyers or financial buyers.

Why?

It's the influence of the Sarbanes-Oxley Act, according to Jay Hachigian of the law firm Gunderson Dettmer Stough Villeneuve Franklin & Hachigian. Public companies have to deal with too many regulations. Hachigian spoke on "Structuring Venture Capital Funds" with Nick Guttilla, his colleague, at the Boston Security Analysts Society on September 21.

The other fact from this presentation that captured my attention is that total venture capital investments are finally trending up again after peaking dramatically at $104 billion in 2000. In 2006, that number will recover to only $25 billion, according to Hachigian's graph.


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