The VC Shakeout

J. Ghalbouni, D. ROUZIES

Harvard Business Review

July-August 2010, vol. 88, n°7/8, pp.21-23

Departments: Marketing, GREGHEC (CNRS)

The article discusses the business of venture capital (VC) from the perspective that it needs to be reorganized in order to better influence innovation and profitability. Studies on the VC system's value proposition, angel investing for new business enterprises, venture capitalists' ability to attract entrepreneurs, and the internal rate of return as a measure of entrepreneurial success are mentioned. Topics include statistics showing the value of VC deals since 1995, initial public offering values since 2000, merger and acquisition values since 2000, and the length of time to liquidity. Analyst Fred Wilson offers his view on the VC asset class.