Ron Shuttleworth submits:

It seems like the Venture Capital [VC] sector has just emerged healthy again from the tech bubble, when now it faces a potentially greater challenge as it deals with larger systemic financial problems. A Survey done by the National Venture Capital Association [NVCA], and reported on by the Associated Press, paints a bleak portrait for the next several quarters.

During the period of 1998 to 2001, Venture Capital was investing in "new business models" associated with the emerging information technology economy. Investment decisions were clearly flawed by greed and speed and a lot of dubious business concepts were funded. Everyone has heard the legends of multi-million dollar investments made into business plans drawn on the back of paper napkins.

Complete Story »