Why Raise Venture Capital amid Unstable Economic Situation 1 by anamaulida

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									As we know, venture capital lies on the opportunity of investing. It
involves high risks and it can be very time consuming. However, if the
ventured business grows it can reap a very huge reward. A few years ago
some venture capital investors are holding back their expenditures amid
the financial downturn, according to some financial blogs. This financial
crisis made it harder for investors to get funding for startup businesses
or business expansion but those who prove themselves during this period
of financial crisis will be better positioned to flourish when the
economy recovers.      According to the IMF's World Economic Outlook
report last January 2010, they forecasted 3.9 percent GDP from the said
year and projected 4.3 percent GDP for this year. Some people thought
that the global economy recovered faster than what was planned, but some
believed that the recovery has been slower than they had hoped. According
to IMF chief economist Olivier Blanchard, a global recession has been
avoided, so that a gradual recovery of world economy is present. But some
developing countries have restored faster after the global crisis
particularly in Asia such as China and India, and in Latin America such
as Mexico and Brazil. Despite this unstable economic situation, the
United States has always been a dominant force in fostering world
innovation.


  With the economy turning down and some educational concerns remain an
issue; the United States has been desperately conscious of a changing
world. Transforming ideas into marketable and lucrative products is the
greatest skill of venture capital that was challenged by the
globalization and technology breakdown in the past years. The venture
capital community was more pressured to continue superior performance and
maintain competitive edge as the global standards are arising. Since
taking his office, President Obama has taken historic steps to lay the
foundation for the innovation economy of the future.       The United
States strongly focuses on innovation. The Obama Innovation Strategy
builds on well over $100 billion of Recovery Act funds that support
innovation, additional support for education, infrastructure and others
in the Recovery Act and the President's Budget, and novel regulatory and
executive order initiatives according to the White House website.
This is an exceptional time for the venture capital community, and
together as a whole, the industry must address venture investments and
methods to make certain to have a continued growth direction for
promising young or startup companies. The economic situation today
creates ideal opportunities for angel investors and venture capitalists.
The importance of venture capital lies not only in providing money for
this innovation but also ancillary services such as selecting good firms,
mentoring entrepreneurs, hiring executives, formulating strategies, and
professionalizing companies thus, providing job opportunities for the
Americans as well.


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