| Venture capital is the funds provided at the early | | | | surpass 2009 levels. It must be understood that |
| stage and growth stage to high potential, growth | | | | venture capitalists are looking for high returns and |
| companies by institutional investor or high net worth | | | | hence the investments goes to sectors which hold |
| individuals in the interest of generating higher returns. | | | | more promise than the others. Few such sectors are |
| Understanding the changing landscape of venture | | | | software industry, clean technology sector, |
| capital investing, which has been significant over the | | | | biotechnology, Industrial/Energy industry and internet |
| past few years, requires knowing what a venture | | | | specific companies lead the pack here. This is quite a |
| capitalist looks for in its investments. | | | | change from the 1980s scenario. |
| Tracing the history of VC will lead you to 1946, just | | | | California, New York and Massachusetts are the |
| after the World War II. Georges Doriot, a former | | | | three prominent US states to receive 70% of the |
| dean of Harvard Business School and founder of | | | | total deals and 65% of the VC funding. Even though, |
| INSEAD, is considered to be the father of venture | | | | these numbers show a rise as compared to the |
| capitalism. In the early stages, VC was used to fund | | | | same timeliness of 2009, it is still below par to the |
| breakthrough projects in electronic, medical, or | | | | 2006-2008 averages. As compared the earlier |
| data-processing technology. | | | | funding, most of them went to the medical related |
| According to PricewaterhouseCoopers, the venture | | | | or internet based companies. Venture capitalists are |
| capital investing has grown by 50% in the USD during | | | | now becoming more comfortable investing in new |
| the first half of 2010 to USD 6.5 billion in 906 deals. | | | | technologies as compared to in between years |
| With the increase in confidence about the economic | | | | where a proven model was the more preferred |
| outlook, the venture capital investing in 2010 is set to | | | | flavour. |