Monday, May 2, 2011

Quigley: Venture Capital Revival Coming

William Quigley, a venture capitalist at Clearstone Venture Partners, is making the argument that venture capital returns are set to return superior returns in the coming years, due to the disinterest of institutional investors. In a report being released this evening, the State of Venture Capital in America, Quigley makes the argument that because venture capital has been "largely abandoned" by institutional investors, the sector is actually due to return "superior performance" to private investors. In the report, Quigley cited the declining amount of venture capital funds raised in recent years (only $12 billion in 2010, versus more than $80 billion in 2000, and $37 billion in 2007); a inordinate amount of that capital going to large, clean technology deals (17% of venture investments in 2010), and an open IPO market, among other factors, as reasons for the conclusions. The report also argues that more value is going to the private, venture investors in firms, rather than to public shareholders after an IPO. (Disclosure: Clearstone is a sponsor of socalTECH).

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