It's been commented on quite a bit that the American economy has an awful lot of cash sitting on the sidelines, and that's been one factor that has made this recovery slower than it might otherwise have been. But we're now starting to see some of those assets get invested into growing, young businesses. One important example: Venture capital.
In the first quarter of 2010, a total of 44 venture-capital funds managed to raise a total of $4 billion. In the first quarter of this year, 36 VC funds were able to raise $7 billion. That's the strongest quarter for venture capital since the third quarter of 2008.
Venture capital, of course, provides the seed money for companies with potentially explosive growth. The more money raised by VC firms, the greater chances there are for small companies to turn into the next Facebook or Google. Perhaps even more importantly, the rise in VC funds shows that the smart money thinks that the American economy is ready to take off. That's a good sign.
No comments:
Post a Comment