As money pours in for start-ups, can funds improve results?
Venture capital in the United States has matured as an industry, and with maturity comes fear of complacency. Many of its stars are reaching retirement age, and the sector faces questions about its inability to beat stock market returns, let alone match its storied performance of the 1990s, when the industry and high tech both rose to prominence. New types of investing approaches such as crowdfunding; increased vigor and coordination by “angel” investors; and greater interest in start-ups by private equity firms, hedge funds and mutual funds mean venture capitalists are facing growing competitive pressure. The industry's clubbiness has brought questions about its lack of diversity, and fears of a new tech bubble raise concerns that VCs are fueling conditions for another economic downturn. Even so, global interest in finding the next great start-up is soaring, opening up more opportunities for venture capital.
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Reports and Studies
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The Next Step
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Angel Capital Association
10977 Granada Lane, Suite 103, Overland Park, KS 66211
Association that represents angel investors in the United States and provides a clearinghouse of information for angel investors and entrepreneurs, including network resources, research and webinars.
European Venture Capital Association
Bastion Tower, Place du Champ de Mars 5, B-1050 Brussels, Belgium
32 2 715 00 20
Represents European venture capitalists and private equity investors; also offers information on how European entrepreneurs can find funding.
Ewing Marion Kauffman Foundation
4801 Rockhill Road, Kansas City, MO 64110
Foundation that is dedicated to entrepreneurialism and economic development.
Global Impact Investing Network
30 Broad St., 38th Floor, New York, NY 10004
Organization that represents social impact investors and develops standards for measuring social and environmental investments.
National Venture Capital Association
25 Massachusetts Ave., N.W., Suite 730, Washington, DC 20001
Trade association for U.S. venture capital firms that also provides research on the industry.
Small Business Administration
409 3rd St., S.W., Washington, DC 20416
U.S. agency that helps Americans start and build businesses; also provides information on entrepreneurship and offers financing and advice.
The Indus Entrepreneurs (TIE)
415 Oakmead Parkway, Sunnyvale, CA 94085
International association of entrepreneurs that organizes conferences to support entrepreneurial development in 18 countries.