Thursday, February 01, 2007

Venture Capital Backed University--Part of an Upbeat Statistic

I thought this was apropos to my earlier post about a new type of university. It would seem that a VC backed entrepreneurial program would simply make sense--from a business standpoint. After all, what better way to get a grip on what the 18-35 yr. olds are after, than to have them pitch their own ideas. You also get access to the best and brightest of the new generation of business owners/managers/creatives.

And from a university's standpoint, it would bring much-needed funding, valuable practical experience for students, and likewise much-coveted national press. Of course, there are other issues to deal with--such as Intellectual Property Rights, technology licensing, accreditation concerns, etc.:

Analysts say the increase reflects lessons learned from the dot-com bust.

Fueled by faith in Web 2.0 start-ups and new technologies in the medical-device and alternative-energy fields, venture capitalists invested $25.5 billion in 2006, marking the highest level investment since the dot-com bust in 2001.

VC investment last year increased 12 percent over the $22.8 billion invested in 2005, according to figures released Jan. 23 by PricewaterhouseCoopers, Thomson Financial, and the National Venture Capital Association.

"Investment has increased, but not at an alarming rate," said Emily Mendell, vice president of strategic affairs for National Venture Capital Association, noting that most analysts do not see the increase in investment as a sign that VCs have returned to the unrealistic expectations of the late 1990s. "The current venture-capitalist community is composed of people who survived the bubble, which is a good thing because they learned an awful lot."

Read the full article here.

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