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Byline: BRIAN DEAGON
The venture capital industry enters 2006 with a wallet packed with cash, of which a good chunk is expected to go to startups in the fields of mobile computing, wireless communications and the Internet.
"It's going to be a great year to start a new company," said Tracy Lefteroff, global managing partner of the venture capital practice of PricewaterhouseCoopers. "Venture capitalists had a very active fundraising year in 2005, which means there is plenty of money to invest in 2006."
The venture capital industry raised an estimated $23 billion last year, says the National Venture Capital Association. That's up 28% from $18 billion in 2004.
"The venture capital industry will fully embrace startup investing and show a willingness to back truly unique and disruptive technologies," said Dennis Dougherty, a general partner at Intersouth Partners. Intersouth manages more than $500 million in tech and life sciences investments.
Wireless in particular is seen as ripe for private investors.
"That industry is going through an inflection point and will create massive opportunity for startups in 2006," said Eric Buatois, managing director at Sofinnova Ventures, with $600 million under management.