Dave Berg sent this article over from the Washington Post titled, Fewer Funds are Raising Capital for Startups. The article by Kim Hart begins with these stark figures:
Only 40 venture capital funds nationwide raised money during the first three months of the year, marking the lowest level of institutional funding in six years.
The funds raised $4.3 billion in the first quarter, an increase over the $3.5 billion raised the previous quarter but down nearly 40 percent from the corresponding period last year. Nearly twice as many funds were able to raise money in the first quarter of 2008, according to data released yesterday by Thomson Reuters and the National Venture Capital Association.