Setting A New Pace
VC investment hit a high note in 2000, but experts anticipate a slowdown.
The results are in: 2000 was another banner year for venture capital investment-but you may have missed it amid all the lamenting over the slowdown in fourth-quarter investment. In fact, total VC investment for the year climbed 80 percent from 1999, to $68.8 billion, according to statistics from the PricewaterhouseCoopers (PwC) "MoneyTree Survey," in partnership with VentureOne.
Not bad-which is why some industry experts are urging calm despite the 18 percent drop in VC investment from third quarter to fourth quarter. "Sure it's cooled off somewhat-you'd expect that," says Tracy T. Lefteroff, global managing partner of PwC's Private Equity and Venture Capital Practice. "Nobody could have kept up the torrid pace we saw earlier in the year. But there's still cash around, and we're getting healthy amounts of money flowing into good companies."
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