Venture Capital Funding Drops 50% In Past Year

This recession has become one of the widest and steepest that we have ever witnessed. Not only has it impacted Wall Street and Detroit, but also Silicon Valley, the home of technology start-ups. According to the PWC Money Tree Report, venture-backed start-ups received about $4 billion in funding during the first quarter of 2009 compared to almost $8 billion a year ago. This steep drop off doesn't bode well for an economy looking for a spark to ignite growth. This drop off along with increased regulation and taxes, will only slow down the turn around that venture capital firms are seeking. Perhaps the White House could send some of its stimulus money to Sand Hill Road which would probably do a better job of creating jobs than any of the 8,000 earmarks submitted by Congress.