Why private venture investing is on the increase
A number of factors have contributed to an increased interest in private venture
investing in recent years:
- Money market returns are at historical low levels and many investors are
seeking out higher returns with private venture investments.
- A consolidation of equity is occurring as the parents of baby-boomers
transfer accumulated wealth to their sons and daughters.
- Certain local and regional economies are vibrant and growing; apparent
opportunities abound.
- Interest and enthusiasm among entrepreneurs is very high in some locales.
- Public equity markets have produced significant gains for investors, some of
whom are looking to diversify by investing profits into private venture
investments.
- Significant amounts of labour-sponsored venture capital funds (e.g. pension
funds) have built up in recent years, encouraging entrepreneurs to pursue
ideas in the hope of attracting this and other sources of venture capital.
Why are you considering venture investing?
Bear in mind the lament of the once burnt, twice shy investor: “Why did I ever
get involved in this mess?”
The romance of venture investing fades rapidly against a backdrop of investor
cash calls, poor results, overly optimistic projections and unmotivated
management, to name but a few. In all cases, the full amount of a venture
investment is susceptible to loss.
READ MORE (Mergers and Acquisitions Change Management: Private venture
investing –
an overview) >> |
