Mind the Gap: Venture Capital's Exit Problems
Don Dodge points to some interesting VC figures on his blog that can be summarized as:
Exits have averaged $18B over the past 6 years while investments have averaged about $40B over the same time period.
For every $1 invested only 45 cents is returned through the sale of a startup or through an IPO. (Maybe all those Web 2.0 investments will pull the funds out of the ditch?)So I guess VCs should be happy to get what they can from selling their portfolio companies to the big players such as Microsoft, IBM, SAP, Oracle, etc.
Microsoft acquired as many companies as Google and Yahoo combined. Microsoft acquired 19 companies last year. Google acquired 10 and Yahoo acquired 9. IBM also acquired 9 companies. Of course Google spent more on acquisitions, spending $1.65 Billion on YouTube alone.
If you don't know Don:
Don is currently Director of Business Development for Microsoft's Emerging Business Team. The goal is to help VC's and start-ups be successful with Microsoft, and together, provide great products for our customers. Don Dodge