The National Venture Capital Association’s annual survey of what VCs expect to happen in 2010 could have been written in part by Bill Gurley, the sage of Sand Hill Road. (Once again we link to his August blog post, “What Is Really Happening To The Venture Capital Industry?”)
Venture funds will shrink and the number of firms will shrink, said a majority of the 325 VCs surveyed, although they do expect to invest a few more dollars in more companies.
They also plan to invest more in clean tech and Internet companies along with companies in China and India. They favor later stage investments over seed and early stage — a fact that concerns NVCA President Mark Heesen, who worries about innovation — and they expect exit markets to improve slightly, with more mergers and acquisitions and a few more IPOs.