A piece, via WSJ, provides some sobering stats:
There were 844 venture firms investing in U.S. companies last year, 40 fewer than in 2006, according to the latest data from VentureSource, a research unit of VentureWire publisher Dow Jones. That is down 30% from the bubble year of 2000, when there were nearly 1,200 active investors.
The total includes a substantial number of firmsâ€“224, or 27% of the totalâ€“who didnâ€™t back any new companies last year, an indication that the ranks of active investors will continue to thin.
The post goes on to give some more data about the US-based National Venture Capital Association’s members:
Heesen said he foresees a 15% decline in the next two years in the total number of venture firms investing in the U.S., many of them too small to meet the NVCAâ€™s membership threshold of $5 million under management. The NVCA has about 470 member firms representing 90% of the venture capital under management in the U.S.,
Many of the active investors in 2007 did only a few deals. Less than halfâ€“45%â€“completed four or more investments. And 29% made just one investment.
What does the community think? Is there a sense of slowdown here in India as well?