Sunday, May 25, 2003

Venture Capital Comeback?

The numbers do not show a revival of venture capital investment ... yet. Investments in the second quarter of 2003 reached their lowest level in five years, and the IPO market continues to disappoint. But there is some reason for optimism. Gains in the stock market and the filing of a registration statement by Crystal Decisions have spawned hope of an IPO revival. The Wall Street Journal recently quoted Steve Fisher of Draper Fisher Jurvetson as saying, "We are doing more deals in any single month than in the history of the firm." Of course, VCs are nothing if not great salesmen, so take their proclamations with a block of salt.