Venture Capital Fact Of Life

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 often is a long shot during a recessionary/tepid recovery economy. Exit strategy can become more problematic. Some skeptics may say the Bigger Fool Theory may be clearer; would-be buyers may not be as eager to buy in to as many venture capital propositions. (See the Earl J. Weinreb NewsHole® comments.)