2011 Venture Investment Increased 22% Over Prior Year
Thursday, January 26 2012

Venture capitalists invested $28.4 billion in 3,673 deals in 2011, an increase of 22 percent in dollars and a 4 percent rise in deals over the prior year, according to the MoneyTree Report by PricewaterhouseCoopers LLP and the National Venture Capital Association (NVCA), based on data from Thomson Reuters. The amount of venture dollars invested in 2011 represents the third highest annual investment total in the past ten years. Investments in the fourth quarter of 2011 totaled $6.6 billion in 844 deals, a 10 percent decrease in dollars and an 11 percent decrease in deals from the third quarter of 2011 when $7.3 billion went into 953 deals.

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NVCA Will Accurately Define Venture Capital in This Election Year
Thursday, January 19 2012

As the race for the Republican Presidential nomination moves into high gear, we have all seen both the media and the competing campaigns turning their focus to Mitt Romney and the time he spent at Bain Capital. Unfortunately, much of the coverage has created significant confusion regarding the difference between venture capital and private equity. While NVCA does not endorse presidential candidates, and we have not and will not comment on Mr. Romney or any other presidential candidate's credentials, we must and will engage the media in the discussion about what venture capital is and is not.

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SOPA & PIPA – Likely More To Come
Thursday, January 19 2012

By now, everyone has heard the news: any immediate action on SOPA and PIPA has been postponed indefinitely. While this is certainly good news, it is by no means the end.

The Internet’s January 18th “blackout” day, which NVCA participated in, was a key factor in bringing this issue to the attention of lawmakers in the House and Senate. Coupled with the media onslaught that SOPA and PIPA received during the congressional recess, it was enough to give lawmakers reason to pause and withdraw support for the anti-piracy legislation.

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Carried Interest & The Presidential Campaign

Not unexpectedly, the discussion in the Republican presidential primary around Mitt Romney’s career in private equity has given rise again to the debate around carried interest. Regardless of whether Mr. Romney ultimately becomes the Republican nominee, we expect many Members of Congress to once more press for changes to the taxation of carried interest. The venture industry should be prepared for this drum beat to continue until Congress passes, and the President signs, fundamental tax reform – which will likely not happen until 2013. Throughout this time, NVCA will continue our efforts to engage policy makers on the factors that make the venture industry both a unique asset class and a unique competitive force for the US economy.


February 2012