Last year, it seemed that almost every venture capital investment was made in the communications sector. Thus far in 2001, however, communications firms in search of funding are struggling to get noticed.
In fact, investments in the sector year-to-date are less than half of what they were over the same period last year – 53 companies receiving $799.58 million in 2001 compared to 91 companies receiving $2.98 billion last year. After recovering from numerous public portfolio burns, buyers seem to be treading carefully through this year’s uncertainty as the Fed adjusts interest rates, the public markets rise and fall, companies miss earnings expectations and the IPO window remains closed.
“The money’s still there, but investors are just more careful about where it’s going,” said Rich Gruber, an analyst with our