As the size and scope of the venture capital market keep on growing, the expansion brings with it an array of mega funds, leading to more capital under management, more investment professionals and more limited partners.
With so many aspects to deal with – at an increasing pace – it’s no wonder venture capitalists are feeling a bit taxed. In addition, they have to worry about who’s minding the firm. Enter the chief operating officer.
This month’s cover story, by Senior Editor Alissa Leibowitz, takes a look at the recent proliferation of the chief operating officer position at VC firms. Many VCs who feel the burden of mounting administrative responsibilities think the hiring of a chief operating officer seems to be just the solution. VCs can now rest assured and focus on their main job: making good investments and building their portfolios.
Of course, growing pains are not the only thing VCs are experiencing these days. They are also busy investing in the ever evolving information technology sector. Finding the next “big thing” is never a walk in the park, especially amid a shifting industry landscape, as the once popular B-to-C investment plays are now being replaced by burgeoning B-to-B and infrastructure plays. In this month’s feature story, Associate Editor Alistair Christopher talks with some leading VCs about where they think the smart money is going and the reasons why.
Lastly, this month’s issue reviews venture disbursements for the first half of the year. It appears that no matter what VCs are dealing with, it has not hampered their investment stride. Even with April’s market correction and a fall-out in the e-commerce sector, venture capitalists continued to dole out record amounts of private funding to enterprising new companies. In fact, VCs invested a record setting $43.39 billion in more than 3,300 companies during the first half of 2000, compared with $19.28 billion in 2,045 companies in the first half of last year.