The Depressing Reality Of Venture Capital, As Told Through Very Sad Charts

M&A exits for venture-backed companies totaled $2.9 billion during the third quarter, down 49% from a year ago, according to Venture Source.

That’s particularly sad because you might recall that last year wasn’t a very good year for the economy.

The IPO market at least beat that dismal era. The National Venture Capital Association (NVCA) says venture-backed companies raised $572 million through IPOs in Q309, up from $188 million during Q308. Still, that’s a tiny amount of IPO liquidty compared to the historical norm.

See the charts →

VCs have to wait for ROI

IPOs are up y/y, but way down from historical norms

Remember the heady days of 2002-2007?

M&A deals keep pace, but prices keep getting cheaper

VC investment levels are flat, but ROI is way down

Q209 showed promise that Q309 left unfulfilled

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