Venture-capital firms caught in a shakeout

I guess all industries hit a slide even those who try to ride industry waves through innovation. According to the Wall Street Journal, at the end of 2009, 794 venture capital firms were active in the United States, down from the peak of 2005 when there were 1,023. That is almost a one in four liquidation. Naturally, the loss has made firms more cautious and as a result, early stage firms with apparent more risk are not being funded as readily. And it means less dollars chasing start-ups.
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