NVCA 4-Pillar Plan to Restore Liquidity in the U.S. Venture Capital Industry

Presentation from NVCA at the 2009 Annual Meeting in Boston:

The above slide show is from NVCA’s website. The NVCA had its 2009 Annual Meeting in the great city of Boston. I went to the NEVN/NVCA Dessert Reception and talked with a few VCs about what they are seeing and hearing these days… because they probably aren’t doing/investing much these days. Just kidding. By the way, great desserts!

I did not attend any of the sessions during the day, but NVCA president’s comment below gives me an idea of what the mood might at the meeting have been like:

“This capital markets issue is not just a venture capital industry problem; it is a U.S. economic concern. If America wants to maintain its economic leadership and continue to grow and innovate, we must re-invigorate the public markets and strive towards healthier IPO levels similar to that which our country enjoyed in the 1980s and 1990s. Without this activity, we can expect job growth to disappear over time.”

The NVCA also released an article that is a bit more detailed than the presentation, but I won’t talk to much about here. You can download it from here if you want to read the whole thing.

I’ve heard many say that the success of the venture capital industry depends heavily on the IPO market. I agree with that for the most part. It makes sense. Given the uncertainty of the current public market and VC industry’s less-than-impressive performance over the past several years, some investors are wondering whether they should invest in venture at all. I disagree with that logic. You can’t time the market and you shouldn’t do venture to fill a bucket in your investment portfolio. You should do it only if it’s appropriate for your investment objectives and can handle long periods of iliquidity. That said, I think the economy will eventually work itself out, and when it does, NVCA’s four-pillars may help expedite the recovery of IPO market for venture-backed companies.

By: Jonathan Lee
Twitter: @hi5at5

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