Conclusion and Recommendations
The impacts of the global economic and financial crisis has wrecked a lot of financial havoc in the venture capital markets, leaving VC firms as well as entrepreneurial start ups and those already in existence with the need to re-look into their operations in order to cope with current as well as other crisis which might happen in the future. In spite of this fact, however, there is still hope as studies indicates that venture capital firms continue to register growth in some part of the world, especially in china and other emerging markets like India and Brazil.
Another trend that has been observed in the venture capital industry is the growth of green technologies, in spite of turbulent oil prices. Therefore, venture capitalists and entrepreneurial start ups should consider giving these promising markets a significant part of their attention and energy in order to relieve themselves some of negative impacts suffered. Consequent to the introduction of stricter criteria that has to be fulfilled by start ups for them to obtain venture capital, it is prudent that entrepreneurs in need of initial funding explore alternative sources of funding such as bank loans as well as “angel investors”.
They in addition might look into altering their methods of communication to potential venture capitalists, for instance structuring their business plans such that they emphasis the immunity of their ventures to potential financial/economic crisis.
References
- Block, J. H. , Sandner, P. , & De Vries, G. (2010). Venture capital and the financial crisis:an empirical study across industries and countries. Rotterdam: Erasmus University. Retrieved August 3, 2010, from http://mpra. ub. uni-muenchen. de/20287/2/MPRA_paper_20287. pdf
- Gompers, P. A., Lerner, J. (2001). The venture capital revolution. Journal of Economic Perspectives, 15 (2), 145-168.
- Kortum, S. S. , & Lerner, J. (2000). Assessing the contribution of venture capital to innovation. RAND Journal of Economics, 31(4) 674-692.
- Makower, J. (2010). Green Business and Cleantech Find Common Purpose: The State of Green Business 2010. GreenBiz. com. Retrieved August 3, 2010, from http://www. greenbiz. com/search/apachesolr_search/Green%20Business%20and%20Cleantech%20Find%20Common%20Purpose%3A%20The%20State%20of%20Green%20Business%202010.
