Venture Capital Funding
This year has been one of booming enterprise for both start-up companies and the established venture capitals backing them. Major growth seen with the reintroduction of failed business ideas of the 90’s and 2000s, have returned this year make way for incredible success and big dollar turn overs.
Popularity in the dot-com age has spread like wild fire across the globe, especially since it has been made convenient with mobile and portable device technology. More people seek out convenient approaches to social media access applications and handy delivery services introduced by new companies. Increasing number of start-ups have built up strong and are fast in supplying to the recent demand.
Time is money
Apart from keeping pace with the growing demand, entrepreneurs with bravado to bring back ideas from infamous business busts of the 90’s have been paid off with positive responses. The time is finally right for the idea of on-demand home delivery services to take with regard to grocery and restaurant services. With a technologically ripe environment where almost everyone is mobile and connected, these services meet with customer demands, efficiently and conveniently.
This being the optimal time, new businesses that evoke memories of past closures like fresh version of Pets.com on One Kings Lane recently garnered over $122 million in Venture Capital funding shooting the company’s market value in the range of $1 billion. The ever popular Pinterest, based on a failed similar idea in GeoCities, claimed to be one of the largest deals made last year with financial backing raised to the tune of $200 million.
Booming venture investments
The people from 90s have gotten increasingly familiar with the internet, using it as a base for practically everything. It has given new start-up platforms the boost to get noticed and take off as roaring successes. It gives established venture capitalists the opportunity to fund and invest in symbiotic relationships with fresh entrepreneurs.
The end of the second quarter of this financial year saw Venture Capitalists invest as much as $7.1 billion in new and upcoming tech-companies, a phenomenal 145 percent increase from last year. The first quarter of 2014 has already shown 51 percent increase and has been recognized as the largest funded quarter seen since 2000.
Deals estimated in value of over $100 million include funding of companies like Lyft, Uber and Pinterest. As hedge funds begin to test the waters of private technology-driven companies, the investment pool has widened considerably.
Decreasing interest rates have added additional prerogatives for capitalists looking to invest in larger sums over longer time spans. Investments in growing companies add to value of the organization, leaving them to demand higher amounts in funds in the following period.
An increase in dispensable excess monies has energized the IPO market, which has welcomed an incredible number of deals. Acquisitions and mergers have also grown to levels unseen since 2007, according to a report by PricewaterhouseCoopers.