Venture Capital – Part 2
Venture Capital Firms can be located on the Internet. These venture capital investors will listen to the wisdom of insuring the physical capability of the managers who will head up the new venture. Success of any venture typically rests on the ability of one or several people who have experience, talent and leadership. The modest cost of Venture Capital Disability Insurance is a logical hedge against investment loss. The only reason VCDI is not an automatic insurance like liability, fire/casualty, business interruption and key person life insurance is that it is a new, a unique and largely an unknown coverage.
A review of the 7/28/03 Communicator will disclose the market size (the number of new ventures being funded) and the funding organizations. Approaching the risk managers of VC firms and/or working with the firms P/C broker opens the case for VCDI and other High Limit Disability Insurance Plans.
Venture Capital Funding On the Increase Nationwide
The Communicator dated 7/28/03 carried the message that business investment would be carried by venture capitalists in the 2003 – 2004 era due to reluctances of individual investors to participate in IPO’s. The business news headlines continue to support that observation. This gives continuing impetus to the market opportunities for VENTURE CAPITAL DISABILITY INSURANCE.
Venture Capitalists have created a large pool of money, gathered from institutions such as pension funds and wealthy individuals, to buy stakes in promising young companies. Their goal is to score a substantial profit at some time in the future by selling the successful, established firm, or taking it public at a propitious time.
Venture Capital investing soared during the high tech boom of the late 1990’s, then collapsed in 2001 as many private and public tech firms crashed. Shocked by their losses, venture capital investors hunkered down and shut off funding. The hibernation is now over according to knowledgeable people in the field.
RIDE THE WAVE
According to PricewaterhouseCoopers, Thomson Venture Economics, National Venture Capital Association, year 2000 was the peak year with over $104 Billion invested. The pace dropped to $231 Billion in 2002 and has now bottomed out. Year 2003 is predicted to be a renaissance year. Venture Capital will continue it’s impressive growth.
A survey by PricewaterhouseCoopers, and the National Venture Capital Association, shows a total of $4.3 billion was invested last quarter. This is up by $300 million over the first quarter of the year. This is a sizable market.