Monday, July 06, 2009

WSJ: VCs seek Stimulus funding

Today's WSJ reports online: "Venture-capital investors see Washington's economic stimulus programs as a potential financial boost for the hard-hit technology firms and other start-ups they own. Of particular interest is more than $60 billion earmarked for four sectors widely invested in by venture-capital firms: environmentally clean technology, rural Internet broadband, cyber security and health-care information technology." Some firms won't survive without Stim funding, a source says. Firms cited include portfolio companies DigitalBridge Communications, Solyndra and Miox Corp.; and, three VCs -- Novak Biddle; Flywheel Ventures; and, Rockport Capital Partners. The article notes VCs raised $2.4 billion in the first quarter, down 64% from $6.6 billion a year earlier. [Add: It's probably no coincidence that the day the WSJ publishes this piece, we got our first promotional mailing from the FreeMind Group, which says it helps companies gain 'nondilutive' government funding.]

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