For Venture Capitalists, Wells Run Dry

Wall Street has not been kind to venture capitalists in the second quarter. For the first time since 1978, not one company they backed went public, taking away their source of big paydays, the New York Times  reports. Observers cite a number of reasons, including lousy market conditions, a shift to investment in alternative energy companies that require time, and a lack of investor interest in the ventures themselves.

“There is nothing that the industry is producing that investors want,” says an analyst, noting the industry’s interest in “idiosyncratic” Silicon Valley offerings. Some venture capitalists note that their industry still lacks direction after the dot-com collapse. But Wall Street has also posed hurdles this year for companies beyond the venture-capital realm, with only 36 firms going public, compared to 130 at this time last year. (More venture capital stories.)