Venture Capital Outlook

Extracted 10JAN2012 from http://blogs.wsj.com/venturecapital/2012/01/09/vc-outlook-flybridges-greeley-...

Michael Greeley (general partner of Flybridge Capital Partners) discusses the harsh realities of the industry, as well as what it would take for venture capital to enter a true golden age.

2011 will mark the onset of significant and swift VC industry consolidation, when the line between the haves and have-nots really shines bright...

By far and away the industry will struggle with its ability to predictably raise new funds, which really reflects the inability of our portfolio companies to get liquid...

Dramatic consolidation will leave the industry with well less than 100 firms consistently making new investments... Unfortunately many promising technologies will not get funded–particularly in life sciences–which is not good for any of us...

investing in a portfolio of innovative companies conceived by brilliant and passionate entrepreneurs out to change the world will consistently generate superior returns.