Venture Capital Funds Become Profitable Again
From Associated Press
Venture capitalists began making money again in 2003, ending a nearly three-year losing streak triggered by the dot-com collapse.
Lifted by a resurgent stock market, venture capital funds averaged an 8.1% return last year, according to statistics released Wednesday by the National Venture Capital Assn. and Thomson Venture Economics.
The results still lagged far behind the stock market. For instance, the technology-laden Nasdaq composite index rose by 50% last year.
Still, 2003’s relatively modest returns heralded a significant breakthrough for venture capitalists. They hadn’t enjoyed a profitable year since 2000, when their funds registered an average return of 29.5%, said John Taylor of the National Venture Capital Assn.
