NVCA: Venture Capital 2010 Predictions

The National Venture Capital Association (NVCA) is out with its 2010 predictions, and the tone is cautiously optimistic.  The NVCA recently released its Venture View 2010, the annual predictions survey.  The NVCA survey was conducted from November 30 – December 8, 2009 and includes responses from more than 325 venture capitalists across the United States. 

  1. 2010 Investment: More Dollars into More Companies.  Sixty-three percent of all respondents expect venture investment dollar levels to remain the same or increase from 2009 with 44 percent forecasting a level between $21-25 billion.
  2. Clean Technology Continues to Garner Optimism.   Clean Technology is the industry where most VCs predict growth with 54 percent forecasting higher investment levels in 2010.
  3. Web Investments.   Nearly half of respondents expect Web investments to increase in 2010, with 15% betting on a decrease. 
  4. More Venture Dollars to Flow to Asia.   A majority of respondents believe that there will be more investment in Asia with 70 percent of VCs anticipating growth in China-based investments and 58 percent seeing greater investment levels in India in 2010.
  5. Later Stage Investment Predicted to Increase.  According the survey, most VCs expect the Growth Equity stage of development to increase with 55 percent of all respondents predicting increased investment there in 2010.
  6. Improving Exit Signs.   74% of the respondents believe there will be more than 20 IPOs next year with the average forecasted IPO volume at 26.3 offerings. Only 10 percent of VCs predict more than 50 IPOs.
  7. A Contracting Industry.  An overwhelming percentage of VCs (90 percent) predict that the number of venture capital firms will decline over the next five years

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