How have Pennsylvania’s venture capitalists fared during the same period? About the same, says Mike Stubler, Managing Director and co-founder of Draper Triangle Ventures and President of the Pittsburgh Venture Capital Association, and Joel Adams of Adams Capital Management.
“I dont think its a surprise to anyone,” Stubler says about the report. “The interesting thing is that of the 40 that were funded only four were new firms while others were existing firms. That tells you it is nearly impossible for new venture firms to raise money while established firms with good track records are still able to.”
“We have a vibrant capital community in Pennsylvania,” he adds. “We’re finding that where venture capitalists go to raise funds, university endowments, pension funds, institutional investors are reeling from a decline in public markets. So they are letting things settle down. Given that public markets were so bad, that venture firms are getting funded is a positive. In these dark times there is still interest in this asset class by institutional investors. Frankly, Im surprised the numbers arent worse.”
That grim optimism is likewise expressed by Joel Adams, general partner of Adams Capital Management, who also believes the venture capital situation in Pennsylvania mirrors the national survey. He affirms it has been difficult to convince investors to place fresh capital into a 10-year fund. Even so, he expects the situation to improve as the year moves ahead.
“I feel tepid optimism but not wild enthusiasm, “Adams says.
Source: Draper Triangle Ventures, Mike Stubler, Adams Capital Management, Joel Adams
Writer: Joseph Plummer
