The Future of Venture Capital

Goodwin partners Jonathan Axelrad and Anthony McCusker recently sat down to share their thoughts on the venture capital climate with TheCorporateCounsel.net.

Jonathan highlighted the changes that have taken place in venture capital since the economic downturn, including the difficulty for investors to raise funds. He also explained that the market in 2010 has improved significantly, particularly for new venture capitalists (VCs) focused on early stage investments.

Anthony added that the outlook has improved for both entrepreneurs starting early stage or “seed” companies and investors who have funds and are looking to invest. With new technologies and a variety of funding sources, entrepreneurs have been able to start companies with lower amounts of capital, allowing them to give up less of the company for their first round of funding.

Jonathan noted that VCs have continued to diversify their investments in both geographies and industries. Countries such as India, China and Israel now play an important role in the venture capital ecosystem, with other countries like Brazil appearing on the radar screen. In emerging economies, non-tech industries such as food and hospitality chains are attracting increasing attention from VCs.

To listen to the complete podcast, click here.
 
This post on Venture Capital was authored by Founders Workbench.

 
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