Why It’s Pouring VC Cash

Since 2001, we've posted 20,581 different business opportunities and ideas, so you're sure to find something here to inspire you!

StepNpull: Open Doors Hands Free

Vote For Your Favorite .biz Domain – Hint! Hint!

Q&A With Christmas Caroloke Creator

February 22, 2005 by Dane Carlson | 0 Comments

Business2.0:

In fact, the first half of 2005 could usher in the biggest flurry of financing the technology world has seen in years. Remember all that money raised in 2000? Most of those fat funds will be closed to new investments after 2005, so VCs have to use that money now — or lose it. According to Keith Benjamin and Pascal Levensohn, managing directors at Levensohn Venture Partners, a huge chunk of the $13.5 billion in VC “overhang” will pour into startups in the next four to six months. If VCs can’t spend the rest of it this year, they must return the unused portion to investors. Even worse, they’ll have to relinquish the 2 percent management fees they’ve collected over the years. That means passing up tens of millions of dollars — unless, as one VC puts it, “I can shovel money out the door.”