Venture Capital

The recession has hit venture capital funding so hard that it's reverted to levels not seen since before the dot-com boom of the last decade. Funding for start-ups fell 50% in the first quarter from a year earlier to $3.9 billion, the lowest since 1998, as venture capital firms conserved their cash and focused on existing investments, a report scheduled for release today says.

When you're San Francisco's hottest start-up, you don't need to look for funding. The money comes to you. Twitter Inc. closed a $35-million venture capital round led by Institutional Venture Partners and Benchmark Capital.

Dear Karen: I'm embarking on an Internet business. How do I get venture capital funding or a small-business loan? Answer: Start-ups usually aren't eligible for venture capital funding or bank loans.

Venture capitalists slammed shut their wallets during the last three months of 2008, investing 45% less in Southern California start-ups than during the same period a year earlier, according to a report scheduled for release today.

The recession brought the U.S. market for initial public stock offerings to a halt in the fourth quarter, closing the worst year for IPOs since 1977, the National Venture Capital Assn.

The credit crisis has hit the country's leading electric car maker. Citing "extraordinary times," Tesla Motors, maker of the battery-powered, $109,000 Roadster, said Wednesday that difficult market conditions were forcing it to delay production of its next-generation vehicle, close two offices, lay off an unspecified number of employees and replace its chief executive.

Venture capitalists raised 5.5% less money from institutional investors in the third quarter than they did in the same period last year, the National Venture Capital Assn.

A large investment in a renewable energy firm helped Los Angeles-area companies record a 33% jump in venture capital funding in the second quarter, bucking the national downward trend, according to a report scheduled for release today.