PricewaterhouseCoopers and the National Venture Capital Association recently released their 2Q 2010 summary of venture capital investment in U.S. private emerging companies, which indicates that venture capital investment for the first half of 2010 totaled $11.4 billion, representing a 49% increase in dollars from the first half of 2009, when $7.7 billion was invested.
Notable highlights: Investment in the Clean Technology sector doubled in the second quarter compared to the first quarter of 2010; seed and early stage investments rose 54% over the last quarter; and first-time financing dollars rose 7% from the last quarter.
As noted previously, the venture investment landscape is tough, and perhaps you should explore other career options if the fire is too hot for you. These recent figures suggest, however, that the amount of dollars invested and the number of deals are increasing — very positive signs for the skeptic.
What can your company do to increase its chances of obtaining funding? To repeat: you must ensure that your company’s ducks are in order.
> You must have a solid strategy and business plan.
> You must understand the hurdles facing your business and be able to articulate how to overcome those hurdles.
> You must be prepared for the business and legal due diligence process.
> You must have a strong management team with relevant experience — both technical and business.
> (NEW) You must be willing to adjust your expectations with respect to what you must give up in exchange for dollars.
