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July 18, 2001
VC investors have been hit with back-to-back quarterly losses in their portfolios for the first time since the mid-1970s.
www.merger.com
by h.pope
Recently Reported in the Wall Street Journal:
Venture Funds Repeat Losses For First Time Since The ‘70s
In case you missed Wednesday’s article (July 18, 2001) written by staff writer Suzanne McGee at the WSJ, here is a summary of what she reported:
Following double and triple-digit gains by many venture funds in the past few years (average returns in 1999 and 2000 were 165.3% and 37.5%, respectively), VC investors have been hit with back-to-back quarterly losses in their portfolios for the first time since the mid-1970s. Specifically, VC funds posted an average loss of 8.9% and 6.3% in Q1'01 and Q4'00, respectively. The 1,200 funds monitored by Venture Economics today potentially face their worst year on record (data compilation began in 1970). Behind the declines is the growing volume of write-downs being taken by venture funds as portfolio companies go out of business, are acquired in a fire sale, or raise a down round of financing. Of course, the write-downs are a natural consequence of the stock-market downturn, since the lion's share of VC returns are generally captured by taking portfolio companies public. Rick Frisbie, general partner of Battery Ventures, summarizes the crux of the issue succinctly; "We're all facing the same problem; that companies were on our books at clearly unsustainable values."
[FULL STORY]
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June 27, 2001
Nothing is Shocking in Electronics
A Spotlight on the Electronics Industry
www.merger.com
by J. Reiner, RCW Mirus
Merger and acquisition activity for the overall electronics industry is down sharply in 2001 when compared to the record setting pace in 1999 and 2000. However, the capital equipment manufactures have seen a sharp increase in M&A and venture activity in 2001.
[FULL STORY]
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July 18, 2001
A Spotlight On The Embedded Software Industry
www.merger.com
by M. Fung, RCW Mirus
The embedded software space has seen significant merger and acquisition activity in recent years. While the industry is expected to grow 16% per year through 2004, the consolidation of small and mid-size embedded software firms continues to increase the margin pressure felt by many firms in the industry. Furthermore, access to the additional capital and distribution channels that a strategic buyer can bring is a way for small and mid-sized embedded software firms to capitalize on their current strengths and fortify their weaknesses.
[FULL STORY]
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July 18, 2001
Full Speed Reverse!
The Reverse Merger: Backing into Wall Street’s Worst Idea
www.merger.com
by J. Molloy and M. Fung
In today's tough environment for growth capital, many companies are considering alternative means for securing growth capital. One of the strategies that we are started to see more frequently is the reverse merger into a publicly-held corporate shell. We often hear the argument that Turner Broadcasting and Occidental Petroleum are reasons to pursue successful reverse mergers but the fact is that these are two very rare successes when you consider that there are approximately 500 reverse mergers every year.
[FULL STORY]
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July 17, 2001
Capital Venue Upcoming Event
Hosted by Capital Venue - Falmouth, MA- August 14, 2001
http://www.capitalvenue.com/Events.htm
by h.pope
The Breakout Sessions are two separate conference style discussions. The first is the Venture Roundtable (formerly the Business Roundtable.) The second is the Business Forum.
The Venture Roundtable provides business entrepreneurs and owners with the opportunity to hear from experts on business plan preparation, approaching venture capitalists, raising money from 'family and friends', alternatives to venture capital, preparing the ideal executive summary, building your business with a venture investor, and other topics.
The Business Forum is similar to the Venture Roundtable above, however the topics focus on the other venture related themes not completely centered around fundraising and fund management, ie, law, marketing, management, etc.
Each Breakout Session is @ twenty (20) people. To pre-register for a seat or for more event information, call us at (888) 848-8300, or e-mail us at info@capitalvenue.com. The cost of the session is posted on each specific event sites.
[FULL STORY]
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