Venture returns slump |
Register here for our next TechFlash Live networking event, March 23, featuring an expert panel discussing the future of online advertising.
Today On Techflash
- Today's the deadline for TechFlash Live
- Amazon leases more space from Vulcan
- Attorney rating service Avvo lands $10M
- HTC responds to Apple patent suit
- iPhone app maker finds a buyer in Gist
- Amazon releases Kindle for Mac
- Zillow releases Android app
- Bing Maps shoots for the stars
- UpWind spins ahead with $29M
- Bellevue plans pitch for Google Broadband
Tech Events
Mass High Tech
Venture returns slump
Venture capitalists continue to outperform the Nasdaq and the S&P 500. However, venture returns fell last quarter as the exit markets dried up, according to a report released today from Thomson Reuters and the National Venture Capital Association. Taking the biggest hit was one year returns, which came in at negative 20.9 percent for the quarter ended December 31.
That compares to negative 2.1 percent for the previous quarter. Three year, five year and 10-year returns also took a hit. Five year returns, for example, came in at 6.4 percent across all venture classes. That compares to 8.4 percent for the previous quarter.
The report indicates bad news ahead for venture capitalists, who rely on companies going public or getting acquired in order to make money. Both the IPO and M&A markets have slowed considerably in the past 12 months, causing concern for VCs.
Given that the report lags by one quarter, it is likely the returns will decline further later this year.
The only bright spot is that public markets are faring much worse. The Nasdaq's one return was a negative 38 percent, while the S&P 500 was down 36 percent for the same period.
About John Cook
John Cook is co-founder and executive editor of TechFlash. He has been covering the technology beat for nearly a decade, writing about startups, entrepreneurs and venture capital, most recently serving as a reporter/blogger at the Seattle Post-Intelligencer.
READ FULL BIOGRAPHYRecent Sponsor Posts
Technology Tax Planning – Did You Take The Deduction?
Technology companies require professional advisors who can assist in all aspects of the business. The BDO Technology Practice provides a full range of services tailored to help address the changing needs of domestic and international companies. In addition to core audit and tax services, BDO professionals can assist technology companies with:
· Revenue recognition
· Business combination accounting
· R&D tax credits
· Compensation and benefits
· Business valuations
Backed by 38 national offices and an international network in 110 countries, we have the domestic and global footprint to serve growing technology companies. Contact sphilpott@bdo.com (audit partner), mreeves@bdo.com (audit partner), psmith@bdo.com (tax partner), tzambito@bdovaluation.us.com (valuation), tfiscus@bdo.com, Director, 206.624.2020
Join the Microsoft WebsiteSpark program and get software, support and visibility – at no upfront cost. You’ll benefit from fast and easy access to current Microsoft development tools, platform technology and server products including Visual Studio, Expression Studio, Silverlight, Windows Web Server 2008 and SQL Server 2008 Web.
Seattle-based Adhost is a WebsiteSpark hosting partner providing dedicated servers with free Windows Web Server 2008 and SQL Server 2008 licensing for three years to Web developers enrolled in WebsiteSpark. Servers are located in our secure data center with SAS 70 Type II certification, 24x7 technical support and 24x7 client access.
Job Listings
- Medical Transcriptionist 2
- State of Washington Department of Corrections
- Director, Digital Systems - External - 712211
- Microsoft Corporation
- Software Development Engineer, Senior - SQL Base Engine - 712168
- Microsoft Corporation
- Research Analyst: Digital / Connected Consumer Research
- Gartner, Inc.
- Principal Design Engineer, Global Foundation Services - 705529
- Microsoft Corporation
