The outlook for local venture capital fund managers remains cheerless, with the number of new deals dropping and any big returns on existing investments still far off, an industry report said yesterday.

The Mid-Atlantic Venture Association’s quarterly survey found that 78 percent of area venture capitalists predicted that fewer than a quarter of the firms they funded will be ready for an exit, such as a public stock offering or sale, in 2003. The amount of time venture capitalists spent examining potential new deals rose slightly last quarter, but 57 percent said the bulk of their hours are still spent on existing investments.

“The attitude is, until we get a significant amount of our portfolio moving, there’s not going to be a lot of new deals,” said Jesse Reyes, vice president of Thomson Venture Economics. “There’s probably enough money, not enough time. Most VCs are saying, ‘Yeah, we’re interested in new deals, but we’re going to be careful about what we do.’ They are spending a lot of time kicking tires.”

Venture capitalists said that when evaluating a deal, the characteristics they now look for most in potential investments are a practiced management team, innovative technology and a product that can sell.

“I think what people have seen is companies are bootstrapping with friends and family and angel investors, to a different place than they were in the bubble. They’ve fleshed out the plans, they’ve got more traction,” said Julia Spicer, executive director of the Mid-Atlantic Venture Association.

But most local venture capitalists say they don’t intend to slam on the brakes entirely this year. Only 2 percent forecast closing no new deals in the second half of 2003, while 65 percent expect to make more than three new investments. And venture investors are gaining optimism that a recovery is on the way; 42 percent reported seeing the start of an upswing, compared with 20 percent of respondents in the same quarter last year.

Nationally, venture fundings did gain speed in the second quarter, when investments totaled $4.3 billion, up from $4 billion in the preceding quarter. Local deals, however, fell 23 percent, to $183 million, during the same period.

Reported By TechNews.com, http://www.TechNews.com

(20030813/WIRES /)

The outlook for local venture capital fund managers remains cheerless, with the number of new deals dropping and any big returns on existing investments still far off, an industry report said yesterday.

The Mid-Atlantic Venture Association’s quarterly survey found that 78 percent of area venture capitalists predicted that fewer than a quarter of the firms they funded will be ready for an exit, such as a public stock offering or sale, in 2003. The amount of time venture capitalists spent examining potential new deals rose slightly last quarter, but 57 percent said the bulk of their hours are still spent on existing investments.

“The attitude is, until we get a significant amount of our portfolio moving, there’s not going to be a lot of new deals,” said Jesse Reyes, vice president of Thomson Venture Economics. “There’s probably enough money, not enough time. Most VCs are saying, ‘Yeah, we’re interested in new deals, but we’re going to be careful about what we do.’ They are spending a lot of time kicking tires.”

Venture capitalists said that when evaluating a deal, the characteristics they now look for most in potential investments are a practiced management team, innovative technology and a product that can sell.

“I think what people have seen is companies are bootstrapping with friends and family and angel investors, to a different place than they were in the bubble. They’ve fleshed out the plans, they’ve got more traction,” said Julia Spicer, executive director of the Mid-Atlantic Venture Association.

But most local venture capitalists say they don’t intend to slam on the brakes entirely this year. Only 2 percent forecast closing no new deals in the second half of 2003, while 65 percent expect to make more than three new investments. And venture investors are gaining optimism that a recovery is on the way; 42 percent reported seeing the start of an upswing, compared with 20 percent of respondents in the same quarter last year.

Nationally, venture fundings did gain speed in the second quarter, when investments totaled $4.3 billion, up from $4 billion in the preceding quarter. Local deals, however, fell 23 percent, to $183 million, during the same period.

Reported By TechNews.com, http://www.TechNews.com

(20030813/WIRES /)

The outlook for local venture capital fund managers remains cheerless, with the number of new deals dropping and any big returns on existing investments still far off, an industry report said yesterday.

The Mid-Atlantic Venture Association’s quarterly survey found that 78 percent of area venture capitalists predicted that fewer than a quarter of the firms they funded will be ready for an exit, such as a public stock offering or sale, in 2003. The amount of time venture capitalists spent examining potential new deals rose slightly last quarter, but 57 percent said the bulk of their hours are still spent on existing investments.

“The attitude is, until we get a significant amount of our portfolio moving, there’s not going to be a lot of new deals,” said Jesse Reyes, vice president of Thomson Venture Economics. “There’s probably enough money, not enough time. Most VCs are saying, ‘Yeah, we’re interested in new deals, but we’re going to be careful about what we do.’ They are spending a lot of time kicking tires.”

Venture capitalists said that when evaluating a deal, the characteristics they now look for most in potential investments are a practiced management team, innovative technology and a product that can sell.

“I think what people have seen is companies are bootstrapping with friends and family and angel investors, to a different place than they were in the bubble. They’ve fleshed out the plans, they’ve got more traction,” said Julia Spicer, executive director of the Mid-Atlantic Venture Association.

But most local venture capitalists say they don’t intend to slam on the brakes entirely this year. Only 2 percent forecast closing no new deals in the second half of 2003, while 65 percent expect to make more than three new investments. And venture investors are gaining optimism that a recovery is on the way; 42 percent reported seeing the start of an upswing, compared with 20 percent of respondents in the same quarter last year.

Nationally, venture fundings did gain speed in the second quarter, when investments totaled $4.3 billion, up from $4 billion in the preceding quarter. Local deals, however, fell 23 percent, to $183 million, during the same period.

Reported By TechNews.com, http://www.TechNews.com

(20030813/WIRES /)

The outlook for local venture capital fund managers remains cheerless, with the number of new deals dropping and any big returns on existing investments still far off, an industry report said yesterday.

The Mid-Atlantic Venture Association’s quarterly survey found that 78 percent of area venture capitalists predicted that fewer than a quarter of the firms they funded will be ready for an exit, such as a public stock offering or sale, in 2003. The amount of time venture capitalists spent examining potential new deals rose slightly last quarter, but 57 percent said the bulk of their hours are still spent on existing investments.

“The attitude is, until we get a significant amount of our portfolio moving, there’s not going to be a lot of new deals,” said Jesse Reyes, vice president of Thomson Venture Economics. “There’s probably enough money, not enough time. Most VCs are saying, ‘Yeah, we’re interested in new deals, but we’re going to be careful about what we do.’ They are spending a lot of time kicking tires.”

Venture capitalists said that when evaluating a deal, the characteristics they now look for most in potential investments are a practiced management team, innovative technology and a product that can sell.

“I think what people have seen is companies are bootstrapping with friends and family and angel investors, to a different place than they were in the bubble. They’ve fleshed out the plans, they’ve got more traction,” said Julia Spicer, executive director of the Mid-Atlantic Venture Association.

But most local venture capitalists say they don’t intend to slam on the brakes entirely this year. Only 2 percent forecast closing no new deals in the second half of 2003, while 65 percent expect to make more than three new investments. And venture investors are gaining optimism that a recovery is on the way; 42 percent reported seeing the start of an upswing, compared with 20 percent of respondents in the same quarter last year.

Nationally, venture fundings did gain speed in the second quarter, when investments totaled $4.3 billion, up from $4 billion in the preceding quarter. Local deals, however, fell 23 percent, to $183 million, during the same period.

Reported By TechNews.com, http://www.TechNews.com

(20030813/WIRES /)

The outlook for local venture capital fund managers remains cheerless, with the number of new deals dropping and any big returns on existing investments still far off, an industry report said yesterday.

The Mid-Atlantic Venture Association’s quarterly survey found that 78 percent of area venture capitalists predicted that fewer than a quarter of the firms they funded will be ready for an exit, such as a public stock offering or sale, in 2003. The amount of time venture capitalists spent examining potential new deals rose slightly last quarter, but 57 percent said the bulk of their hours are still spent on existing investments.

“The attitude is, until we get a significant amount of our portfolio moving, there’s not going to be a lot of new deals,” said Jesse Reyes, vice president of Thomson Venture Economics. “There’s probably enough money, not enough time. Most VCs are saying, ‘Yeah, we’re interested in new deals, but we’re going to be careful about what we do.’ They are spending a lot of time kicking tires.”

Venture capitalists said that when evaluating a deal, the characteristics they now look for most in potential investments are a practiced management team, innovative technology and a product that can sell.

“I think what people have seen is companies are bootstrapping with friends and family and angel investors, to a different place than they were in the bubble. They’ve fleshed out the plans, they’ve got more traction,” said Julia Spicer, executive director of the Mid-Atlantic Venture Association.

But most local venture capitalists say they don’t intend to slam on the brakes entirely this year. Only 2 percent forecast closing no new deals in the second half of 2003, while 65 percent expect to make more than three new investments. And venture investors are gaining optimism that a recovery is on the way; 42 percent reported seeing the start of an upswing, compared with 20 percent of respondents in the same quarter last year.

Nationally, venture fundings did gain speed in the second quarter, when investments totaled $4.3 billion, up from $4 billion in the preceding quarter. Local deals, however, fell 23 percent, to $183 million, during the same period.

Reported By TechNews.com, http://www.TechNews.com

(20030813/WIRES /)

The outlook for local venture capital fund managers remains cheerless, with the number of new deals dropping and any big returns on existing investments still far off, an industry report said yesterday.

The Mid-Atlantic Venture Association’s quarterly survey found that 78 percent of area venture capitalists predicted that fewer than a quarter of the firms they funded will be ready for an exit, such as a public stock offering or sale, in 2003. The amount of time venture capitalists spent examining potential new deals rose slightly last quarter, but 57 percent said the bulk of their hours are still spent on existing investments.

“The attitude is, until we get a significant amount of our portfolio moving, there’s not going to be a lot of new deals,” said Jesse Reyes, vice president of Thomson Venture Economics. “There’s probably enough money, not enough time. Most VCs are saying, ‘Yeah, we’re interested in new deals, but we’re going to be careful about what we do.’ They are spending a lot of time kicking tires.”

Venture capitalists said that when evaluating a deal, the characteristics they now look for most in potential investments are a practiced management team, innovative technology and a product that can sell.

“I think what people have seen is companies are bootstrapping with friends and family and angel investors, to a different place than they were in the bubble. They’ve fleshed out the plans, they’ve got more traction,” said Julia Spicer, executive director of the Mid-Atlantic Venture Association.

But most local venture capitalists say they don’t intend to slam on the brakes entirely this year. Only 2 percent forecast closing no new deals in the second half of 2003, while 65 percent expect to make more than three new investments. And venture investors are gaining optimism that a recovery is on the way; 42 percent reported seeing the start of an upswing, compared with 20 percent of respondents in the same quarter last year.

Nationally, venture fundings did gain speed in the second quarter, when investments totaled $4.3 billion, up from $4 billion in the preceding quarter. Local deals, however, fell 23 percent, to $183 million, during the same period.

Reported By TechNews.com, http://www.TechNews.com

(20030813/WIRES /)