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FP Venture Commentary Are You Venture Worthy ? 300 Companies Surveyed We wanted to provide an update from the ongoing market analysis of VentureWorthy.com. VentureWorthy researches companies while they are in the process of raising capital, versus other research platforms today which report only on companies after they have completed raising capital. Below are some key findings and notes on the change in market dynamics over the last 3 week period. - 66% of companies raising capital are at the Startup stage (a 7% change), 22% are at the Launched stage (a –6% change), and 10% are Profitable (a -3% change). - While looking at the top 5 industries for companies that are seeking capital. There was a wide shift in industries, which we believe demonstrates more variety in the market, versus the “herd” mentality of two years ago, where every other company was competing for the same customers. We also continue to note the strength of non- technology companies who are seeking capital, versus two years ago where everyone was a dot com. 1) Non-Technology 2) Professional Services, 3) Consumer E-commerce, 4) Application Service Provider, and 5) Software - The average amount of capital a Startup and Launched company is seeking today is $100,000 for a Profitable company it is between $1-3 Million. This is a dramatic drop from the last time period where the average company was seeking $1-3 Million, versus the current $100,000. We believe this shows another trend where companies are back to “bootstrapping”, raising much less capital while proving their business case. - The average valuation of startup and launched companies today is under $1 Million, for Profitable companies the average valuation is between $3-5 Million. The valuation for startups have remained consistent and the valuation for profitable companies have dropped off to what we believe is a more reasonable level in this market. If you are interested to see how your company compares against similar companies who are also seeking capital, please go to VentureWorthy.com to complete the free survey today: www.ventureworthy.com We are proud to announce that the VentureWorthy Q4 2001 research is now available. ORDER RESEARCH Agree? Disagree? Please email your viewpoints and comments to comment@FundingPost.com we will discuss your comments here. Read previous Venture commentary here. | |||||
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