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VC funding plummets

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High Five
Tuesday, July 21, 2009

The drop in VC funding in Oregon followed suit with the national decrease: U.S. investments were cut in half in the spring, the second consecutive quarter to post a drop of over 50 percent. But Oregon's VC decline may not be as significant as the numbers indicate.

[Two] surveys showed venture investment in Oregon fell by more than 50 percent in the first half of the year. But that dramatic decline may overstate the implications of the drop, since Oregon brings in relatively few venture dollars and the total is therefore highly variable from year to year...

Venture capitalists have become more cautious as the worst U.S. recession since World War II has unfolded. The horrible economy has made it tougher for startups to complete initial public offerings of stock or find buyers. The paucity of IPOs and buyouts have made it increasingly difficult for venture capitalists to cash out of their existing investments, giving them less incentive to finance new deals.

Read the full story at OregonLive.com.

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