Equilibrium?

Justin Hibbard

It's that time of year when two major vendors of VC data, Thomson Venture Economics and Dow Jones VentureOne, release their annual figures on the total amount of VC money invested in the U.S. Their results diverge frequently, but one point they agreed on this time is that the amount of VC money invested in 2004 increased year-over-year for the first time in three years. In other words, the post-bubble malaise began to wear off last year, and VCs returned to investing actively. Now, the million-dollar question: is the current level of VC investing the "new normal?" (Hey, that sounds like a good title for a book.)

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