John K. Paglia, associate professor of finance and senior researcher, has been receiving a great deal of buzz over the most recent findings of the Pepperdine Private Capital Markets Project. Detailing the 2010 outlook for private capital providers and privately-held businesses, the project performs ongoing research into the true cost of capital and the behavior of private lenders and investors. Surveys are conducted and reports published twice a year.
The most recent survey, which took place in October and November of 2009, captured the expected returns of capital providers, including banks, asset based lenders, mezzanine funds, private equity, venture capital, and privately held companies in a 12-month forecast. The study revealed a particularly tough state for venture capitalists: 59% of respondents reported a decline in the number of plans funded; 61% reported an increase in time to exit; 73% reported a decrease in appetite for risk; 61% believed that fundraising prospects had declined, and 91% saw a contraction in the industry.
Watch the video as Prof. John Paglia offers a more in-depth analysis of the findings, and and let us know how the venture capital contraction is affecting your industry.
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