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VenturePresentation.com attends Venture 2002
Below are some notes from the CED's Venture 2002 in Chapel Hill, NC where early and middle stage technology and biotech companies presented to Venture Capitalists and the local business community. Email us at info@venturepresentation.com if you have questions or need additional information.
Venture 2002 was well attended by Venture Capitalists. Top VCs included Draper Fischer Jervetson, Intel Capital and Noro-Moseley Partners. VCs were eager to attend for 2 reasons: First, Venture 2002 showcased 25 companies from the triangle area focused on raising capital for their growing businesses. Second, North Carolina State Treasurer Richard Moore stated in the conferences Opening Remarks that the State's $60 billion pension fund would be investing more in Venture Capital. Implicit in this investment is how much has been and will be invested in North Carolina companies.
In talking with many VCs, we found many funds were in a holding pattern. For example, for a VC who has already raised a first fund, much of the capital is already earmarked for existing portfolio companies. Unless it is a top tier VC, it is very difficult to raise fund two or three for example. Much of the VCs time is now spent with the portfolio company. Specifically, many VCs are taking a leading role in trying to find additional funding for their portfolio companies. Unfortunately, many VCs are only focused on their portfolio companies, so its hard for VCs to pull the trigger on investments that are not in their portfolio. This circle game results in a lot of conversations between VCs, but very few investments. However, a few "inside" rounds are getting done, but that is about it.
The VC industry is in for a long slow ride and will not be able to raise additional funds until the public market for technology and biotech companies return. Even when the public markets do return, only VCs with a long track record will be able to raise funding for additional investments. However, if a VC invests in North Carolina, the State of North Carolina may be interested in becoming a limited partner of the fund.