Venture Capital Funding Drops To Pre-Bubble Levels

from the is-that-the-bottom-or-does-it-keep-going? dept

The first reports looking at how much venture capital was invested in the last quarter of 2002 show that investments have dropped to their lowest levels since 1998 in California (and in Washington DC as well). I'm actually surprised that the investment levels are still this high. While the report warns that we may still be heading down the down curve, this doesn't indicate the complete drop off in venture capital funding that people make it out to be. In 1998 there was still plenty of venture capital being raised, as there appears to be now. The real question, though, is what types of companies are getting this money. Is it just being used to prop up old, questionable investments, or is it going towards new ideas that have the potential to be something great?