Venture capitalists optimistic but cut back-survey

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SAN FRANCISCO, June 9 (Reuters) – A majority of venture capitalists are cutting back on the number of investments they have but many remain optimistic in the long term, an industry group reported.

The National Venture Capital Association, working with Deloitte Touche Tohmatsu, said that 51 percent of 725 venture capitalists surveyed are decreasing the number of companies they plan to invest in. By contrast, only 13 percent are making an increase.

At the same time, many remained optimistic about the future. More than half said that now is a good time to invest in new companies, and nearly half said they believed their future investments would be larger than now.

“Going around the country, I hear venture capitalists, by and large, think we have hit bottom and will be making our way out of this this year,” said Mark Heesen, president of the National Venture Capital Association. He spoke in a telephone interview with reporters.

One Comment

  1. Remember the quote "they will be investing in new companies." I would suffice to say that these companies do not include the Custom Spines, the X-Spines, the Life Spines and Hydrocision. Terrible Leadership. I think it is interesting that Healthpoint Capital Partners would invest into their own company at a higher price than what the closing price was for the four previous closing days. It's evident that Alphatec Spine has an enormous burn rate considering that they were in trouble back in December. I see more "me too" products being offered and a company that has inventory issues.

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