July 29, 2011 (Mountain View, CA) – Barry Kramer, partner in the Corporate Group with Fenwick & West, was recently quoted in TheStreet.com article "VC Funding Down Amid Economic Worries."
In Q2 of 2011, venture firms began to scale back their investment, particularly in the technology sector, due to economic fears. With buzz swirling regarding a tech bubble, similar to the boom and bust of the late 1990's, as well as continued economic uncertainty, investment dipped 5% in the second quarter with a 2% decline in deals from the same time last year.
Barry Kramer, who represents tech start-ups, stated that a challenging fund-raising environment for VC firms may also be to blame for a dip in investments.
The National Venture Capital Association says that funds receiving investments from institutional investors dropped 23% last quarter, highlighting the increasing difficulty for venture firms to find the necessary funding for start-ups.
To read the full TheStreet.com article, click here.