http://www.daviddalka.com/createvalue/2007/08/24/how-the-credit-crunch-could-be-good-for-venture-capital-and-other-sectors/ Digital Strategy Solutions, Change Management Leadership, Business Speaker, Payments Technology Convergence Sat, 11 Feb 2012 00:11:18 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.daviddalka.com/createvalue/2007/08/24/how-the-credit-crunch-could-be-good-for-venture-capital-and-other-sectors/comment-page-1/#comment-33247 scientella Wed, 05 Sep 2007 18:17:50 +0000 http://www.daviddalka.com/createvalue/2007/08/24/how-the-credit-crunch-could-be-good-for-ventrue-capital-and-other-sectors/#comment-33247 The credit squeeze would only help venture capital if the amount of available funds stayed the same but shifted out of equity markets. It wont. The amount of available funds will diminish for two reasons, 1. There was never as a much as the highly geared figures produced. When the leveraging reduces so will the number. 2. There will be a risk aversion. Venture capital is risky. It will dry up. The credit squeeze would only help venture capital if the amount of available funds stayed the same but shifted out of equity markets. It wont. The amount of available funds will diminish for two reasons,
1. There was never as a much as the highly geared figures produced. When the leveraging reduces so will the number.
2. There will be a risk aversion. Venture capital is risky. It will dry up.

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