There is plenty of venture capital around. However, the problem is that venture capitalists worry they have little escape opportunities with which to make their eventual profits.
Venture capitalists make their big profits only when they can sell their ownership through a major Wall Street underwriting. or with a private sale to a major corporation.
And that is now a long shot in today’s recessionary/tepid recovery economy. Exit strategy is now more problematic. Some skeptics may say the Bigger Fool Theory is clearer; would-be buyers are not as eager to buy in to as many venture capital propositions.
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