Venture Capital Industry Decline

Zero Venture-backed IPOs in Second Quarter of 2008
As I recently described, an initial public offering is when a company first issues common stocks or shares to the public. This is a critical opportunity for venture capital investors to collect returns, but the National Venture Capital Association reports that there were no venture capital-backed IPOs in the second quarter this year.

The number of venture-backed IPOs fell from an average of seven per month last year to zero in the second quarter of 2008 (April, May June). Mergers and acquisitions volume similarly declined in Q2, the number of M&A deals dropped from 70 to 50 in the last quarter.

This illustrates the recent decline in the venture capital industry following the boom that began this decade, the NVCA President said that the start-up industry's fall "represents a serious problem that will have long reaching economic implications if not addressed."

Read the full report here.

Link to This Resource: Venture Capital Industry Decline

http://privateequityblogger.com/2008/07/venture-capital-industry-decline_08.html

Private Equity Analyst

The Private Equity Analyst is a comprehensive monthly print newsletter that provides news and information about all areas of private equity from venture capital to mezzanine financing. Started in 1988, the Private Equity Analyst has built a reputation as a top news source for private equity firms. Just one catch, a one year subscription is $1495!

Link to This Resource: Private Equity Analyst

http://privateequityblogger.com/2008/07/private-equity-analyst.html

Exchange-Traded Funds

Similar to an index fund, an exchange-traded fund follows an index or a commodity, but it is traded like a stock. The exchange-traded fund's price varies throughout the day, and does not have a net asset value calculated at the end of each trading day. Most ETFs have been passively managed, but recently the SEC authorized actively managed ETFs.
Benefits of an Exchange-Traded Fund

• An exchange-traded fund is traded like a stock, so the investor can buy on margin or sell short. Plus there is no minimum investment required, so an investor can own as little as one share in the fund.
• Like an index fund, many exchange-traded funds are passively managed, which reduces management expenses considerably.
  
• Many investors love the diversification that an exchange-traded fund offers.
  

Link to This Resource: Exchange-Traded Funds

http://privateequityblogger.com/2008/07/exchange-traded-funds.html