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May 17, 2008 1:35:01 AM CDT



Sinking Market Forces New Venture-Capital Strategies  

Posted Apr 3, 08 4:25 PM CDT in Technology Business    Editor's Choice

(newser) – Venture capitalists are watching economic indicators carefully, trying to find safer places to put their mountains of money, CNET reports. The stats on first-quarter VC activity will land soon, and though experts don't expect dollar totals to have waned, players are “under pressure to invest in quality companies that have a clear business model,” one watcher said.

The number of venture-backed deals is way down, CNET adds. VCs are looking twice at “new start-ups like two guys in a garage,” another expert explained—and older companies need additional rounds of financing to stay afloat. And a Microsoft-Yahoo merger would hurt, analysts believe, as there would be one fewer giant company to snatch up start-ups.

Source CNET

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Sinking Market Forces New Venture-Capital Strategies
Apple CEO Steve Jobs, left, hugs venture capitalist John Doerr, right, with the investment group, Kleiner, Perkins, Caufield & Byers.   (AP Photo/Paul Sakuma)
Sinking Market Forces New Venture-Capital Strategies
Microsoft executive Robert Bach.   (AP Photo/Isaac Brekken)
Sinking Market Forces New Venture-Capital Strategies
Venture capitalist John Doerr talks about a substantial kitty of $100 million to lure developers to the iPhone during an announcement at Apple headquarters in Cupertino, Calif., Thursday, March 6, 2008....   (AP Photo/Paul Sakuma)
Sinking Market Forces New Venture-Capital Strategies
Market charts show Dow, S&P 500 and Nasdaq; 2c x 4 1/2 inches; 96 mm x 114 mm   (AP Photo)
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