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Do VCs Foster Innovation?

April 14, 2005

Do venture capitalists foster innovation? Bart Stuck and Michael Weingarten, managing directors at Signal Lake Management, an early-stage telecom venture capital fund, tackle this very question for an exhaustive article in this month’s IEEE Spectrum, the magazine of the IEEE.
Stuck and Weingarten, who have WAY too much time on their hands, examined 1303 high-tech IPOs for a 10-year period ending in 2002. They then devised a rating system to determine which companies were genuinely innovative. Their conclusion: “the tech bubble saw an explosion of VC-funded start-ups – and a dearth of orignal ideas.”
The article also includes a handy overview of the VC investing process.
Read: How Venture Capital Thwarts Innovation – [IEEE Spectrum Online]
See: Signal Lake site

One Comment leave one →
  1. June 22, 2006 2:52 am

    Edmonton dominated the Carolina Hurricanes on Saturday night and the 4-0 margin in Game 6 makes it hard to imagine the Oilers not hoisting hockey’s Holy Grail above their heads in less than 48 hours. And it would not come as any shock to see defenseman Chris Pronger, who had another 31-minute night, take the honors for the Conn Smythe Trophy as the playoff MVP.

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