Demand by VC firms dips, leaving money to sit.(Venture capital companies)(Case Western Reserve University invesments)(Ohio Public Employees Retirement System investments)

Crain's Cleveland Business, August, 2005 by PETTYPIECE, SHANNON

Byline: SHANNON PETTYPIECE So much money, so few takers. That's an unusual scenario in Ohio, but it's the situation facing some endowments and state pension funds that are trying to invest money in venture capital. More money managers have wanted to invest in venture capital lately because the top venture firms generally have produced better returns than the stock market has during the past five years.

However, the supply of money available to invest in Ohio and nationwide is greater than the demand from venture capitalists, who have become more selective about where they take money from and how much money they invest. That supply-demand equation is posing a hurdle for newer entrants in the venture capital game. "The really good funds have all the...

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