Venture capitalists have been a major driving force behind Silicon Valley, helping to transform startup ideas and innovation into successful businesses and job creation.
Without them, we wouldn’t have Apple, Google, Intel, Genentech or Oracle. But the industry is at a crossroads, putting corporate innovation and job creation at risk.
VCs historically are among the most efficient creators of technology innovation and job growth. But today, entrepreneurs can increasingly take advantage of technology (like the cloud and the smartphone) to develop and deliver products to customers at much lower costs than before.
This is reducing their need to raise venture capital. Additionally, alternative funding sources are encroaching upon the VC’s traditional turf.
What can VCs do to evolve and adapt, and continue to boost wealth and job creation?
A new Accenture study into challenges and opportunities before the industry offers five suggestions:
VCs must venture beyond the Bay area
Adapt to the new funding reality
Step up efforts to diversify investment
Create new exit strategies
Recommit to venturing
The study also offers five ways the government can assist venture capitalists to reaffirm their commitment to innovation and startup businesses.
DOWNLOAD IF VENTURE CAPITAL FALTERS, WILL JOB CREATION FADE? PDF [PDF, 711 KB]