Dark Days For Venture Capitalists

07/09/2008 05:12 am ET | Updated May 25, 2011
  • Matt Richtel The New York Times

As I reported Saturday, venture capitalists experienced a very poor second quarter. The industry's trade association said Tuesday that for the first time since 1978, not a single venture-backed company went public in the quarter.

From the perspective of the venture capital industry, it turns out that the news was worse than I reported.

The other bad news was the industry's disclosure early Monday morning that acquisitions of venture-backed companies are down sharply too. In the second quarter, 50 merger and acquisition deals of venture-backed companies were completed. That's down from 70 in the first quarter.

In the first half of 2008, there were 120 such deals altogether, down 28 percent from the 169 in the first half of 2007.

Read more on The New York Times