Friday, July 11, 2014

Venture Capital Funding Stronger

The venture capital market has been sluggish for years. But the first quarter of 2014 was strong.

One major reason for the sluggish marketplace has been investors' concerns about opportunities to get out of their investments. Because initial public offerings (IPOs), mergers, and acquisitions have been soft for years, fewer venture capitalists have been willing to put their funds at risk by providing venture capital to unproven startups.

Thomson Reuters and the National Venture Capital Association (NVCA) did a study, and they're reporting (according to Processor magazine) that the first quarter of 2014 was the strongest venture capital quarter since the fourth quarter of 2007. The $8.9 billion (US) raised in the first quarter of 2014 is up 81 percent over the fourth quarter of 2013, and up more than 100 percent over the first quarter of 2013.

All of this means that more opportunities should be available for small independent software vendors (microISVs) in the coming months to raise venture capital for their software development firms.

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