Venture capital investing is back. Back with a vengeance. And back in the black.

Venture capitalists invested $5.8 billion in 750 companies in the second quarter of 2005, significantly higher than the $4.9 billion in the preceding quarter. Moreover:

• Later stage funding is back in business as it reached a four-year high of $2.4 billion in the second quarter of 2005.

• During the same quarter, investments in start-up and early stage companies increased to $1.3 billion, a three-year high.

• The 10-year performance for all venture capital funds at the end of March 2005 was 25.4%.

Investors can expect more high voltage results as there was some $110 billion of committed, but uninvested, venture capital in the beginning of 2005. Further:

• The resilient IPO market promises power-packed returns for venture-backed companies that use the public markets for their exit strategies.

• Private equity acquirers now account for a historically high 13% of all U.S. M&A volume, which will almost certainly exceed $1 trillion in 2005.

This conference is designed to provide venture capital investors with insights into the most promising industries – such as Clean Technologies, Digital Media, Internet, Software, Health Sciences, Wireless, and Business Services. Entrepreneurs will also gain insight into best practices for developing lasting and lucrative relationships with the venture capital community. Attending investors will also have the opportunity to listen to ten dynamic private companies deliver road-show-like presentations.

Negotiating Term Sheets Should not be a Journey on the Highway to Hell

After the bursting of the Internet bubble there was a serious communication breakdown between the entrepreneurial and venture capital communities. Meetings between the two were like lining up on opposing sides of scrimmage lines. Terms such as clawbacks, anti-dilution provisions, senior liquidation preferences, and down-rounds were volleyed across the negotiating tables.

The Wall Street Transcript’s Fourth Annual Venture Capital Conference has been designed to help foster better working relationships between venture capitalists and entrepreneurs. We have panel discussions that help the two sides agree on milestones, affect change of control and more effectively manage their intellectual property.

In addition, we will have renowned venture capitalists discuss the most promising niches of opportunity within the Clean Technology, Digital Media, Internet, Business Services, Software, Wireless, and Health
Care sectors. Attendees will also have the opportunity to listen to road-show presentations delivered by ten emerging technology leaders who will discuss their companies’ technology, research and development initiatives, business models, competition and plans for growth. 

I invite you to have a drink on me while mingling with America’s leading entrepreneurs and ventures capitalists during our networking breaks, meals and cocktail receptions.

We look forward to seeing you – come hell or high water - on November 8-9, 2005.

David Wanetick
Managing Director
The Wall Street Transcript &
Gateway Research