Woe Betide The Poor VC

(Newser) - Troubles hitting the Wall Street giants promise particularly dark days ahead for the tech business world, analysts tell CNET News. The problems are bound to stifle mergers and acquisitions in the tech industry and further dampen the market for initial public offerings. IPOs have already slowed to a trickle—and may soon grind to a halt. More »

(Newser) - Vinod Khosla isn’t just smarter and richer than the average venture capitalist—he’s greener, too. Khosla has sunk $450 million into what he calls “imprudent science experiments" over the past 4 years, financing 45 enviro-tech startups. “We've funded an incredible number of things that would make no sense at all for a traditional venture fund,” the 53-year-old tells Fast Company. More »

(Newser) - Silicon Valley IPOs are suddenly an extremely rare beast, driven nearly to extinction by the sputtering economy, the Wall Street Journal reports. The first quarter has seen just five venture-backed offerings, compared to 31 last quarter. “The economics have been destroyed for small-cap IPOs,” says the co-founder of Revolution Partners, one of a glut of new investment banks stepping in to help. More »

(Newser) - 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. More »

(Newser) - Economic troubles that have meant fewer IPOs and less-lucrative mergers have the venture-capital industry in upheaval, the San Jose Mercury News reports after last week's Silicon Valley gathering of VC players. Many believe the moneyed backers must treat entrepreneurs better for prospects to remain lively. Yet, though returns have turned negative, the firms are still attracting investors.  More »

(Newser) - Venture capitalists are swarming around firms developing LED (light-emitting diode) and similar lighting technologies beyond their current applications in calculators and cell phones, the San Jose Mercury News reports. Investors see new sources, using one-sixth of the power of incandescent bulbs, as environmentally friendly replacements for indoor and outdoor lighting. More »

(Newser) - A failed start-up doesn't spell purgatory for entrepreneurs with the right connections, the Boston Globe reports. Take Mort Rosenthal, who struck gold in the 1980s as a software entrepreneur, only to launch two flops—one in alternative medicine, the other in cell-phone retail—with millions in lost venture capital. Now he's back in the game with a business backed by $20 million Microsoft dollars. More »

(Newser) - Venture capitalists’ investments declined 5% in the first quarter to $7.1 billion, compared with $7.5 billion this time last year, suggesting entrepreneurial concerns over startups in a troubled economy, the AP reports. The change marks the first year-to-year dip s