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Profit Dynamics Venture Capital Survey Introduction | How Long to Close | How To Contact | With What | Valuation Factors |Probability Competition | Define Management | Substitutes? | Find The Deals? | Decision to Invest | Why No? Worst Business Plan Mistakes | Common Plan Mistakes | First Impressions | |
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Venture Capital SurveyThe Number of Companies Seeking Funding Is On The Rise Venture Capitalists were asked whether the number of new companies that have contacted them over the last 12 months has changed, on a scale from 1 (greatly decreased) to 5 (greatly increased). The average response was just over 4, with two-thirds of those polled saying either 4 or 5. These results reflect the large number of Internet-based start-up companies that have been organized in the last year, and have rushed to obtain funding in order to achieve the first to market advantage over competitors. While the level of venture capital funding has reached an all time high so in 2000, according to the Price Waterhouse Coopers Venture Capital Survey, the number of companies receiving funds has not increased by that same accelerated rate. The size of each individual investment is becoming larger rather than more companies being funded. What this means is that given the greatly increased number of new companies contacting the Venture Capitalists, the odds of any one company being successful have deteriorated to below the 7 in 1000 odds determined by last years' Profit Dynamics Inc. Venture Capital Survey.
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