Venture capital returns hit the skids: ROI hits first negative numbers in a decade. (Finance).

Electronic Business, February, 2002 by Zizzo, Thomas

There was a time when a venture investment in a tech company was, if not a sure bet, certainly a reasonable wager. Some returns were quick and high. But now, this once high-flying opportunity compares unfavorably with the biotech and medical segments.

In fact, 3-month and 1-year returns on a high-tech investment have fallen into negative numbers, mirroring the overall trend. Venture capitalists haven't seen negative numbers on their returns since the early '90s, according to New York-based research firm Venture Economics. But returns have been tumbling since late 1999 [see ELECTRONIC BUSINESS, April 2001, page 27] and really hit the skids the first half of 2001 when they became negative for two consecutive quarters. According to Venture Economics'...

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