Arlington, Va. - The coming year will most likely be a difficult one for U.S. venture capitalists, who predict a slowdown in investing across most sectors and a continued weakened exit market, according to a new survey by the National Venture Capital Association (NVCA).

Most VCs surveyed, however, predict a recovery in 2010, with the IPO market expected to re-open and those companies and venture firms that weathered the storm emerging stronger.

"The recession and shuttered IPO market will place tremendous pressure on portfolio companies to tighten their belts and re-tool where necessary," said Mark Heesen, president of the NVCA.

"That said, most venture capitalists will say that a down market is the best time to invest when valuations and competition are lower. There is no recession on innovation and great ideas will still get funded -- especially in sectors that have more insulated demand such as clean technology and life sciences."

The survey includes the predictions of more than 400 venture capitalists from across the U.S.

Related Links:
http://www.nvca.org/pdf/09PredixRelease.pdf (PDF)

http://www.nvca.org