Beth Healy reports on forecasts for another tough year for venture capitalists in 2003.
Indeed, venture funds are being cut, and fees are being slashed. The economy is still weak and large companies aren’t spending enough money to support the legions of struggling start-ups that are likely to die off in 2003, VCs say. Michael Greeley, managing general partner at IDG Ventures in Boston, says he expects ”continued, and perhaps accelerated retrenchment” among venture firms. That will result in part, he says, from VC returns falling below historical norms over the next three to five years.