Venture capital (VC) has traditionally been an important source of funds for start-ups, management buyouts and businesses undergoing restructuring. However, in the face of difficult market conditions, there is evidence both that treasurers, particularly in smaller companies, are turning to alternative sources of finance and that VC investors are losing faith in profitable exit opportunities. This article looks at some of the challenges currently facing VC investors in the UK and at the prospects for the VC market in 2003.
