Bill Frezza writes for the blog RealClearMarkets.com “which is a one-stop shop for market-related news, analysis and commentary. RealClearMarkets collects and publishes content from across the ideological spectrum dealing with the major topics and discussions from the worlds of business, economics, finance, and political economy. From CNBC to Forbes, from the Wall Street Journal to Infectious Greed, RealClearMarkets allows you to peruse and dissect information from your favorite blogs, news channels, journals, think tanks, magazines, and online publications in an daily, easy-to-read format.” [Via: RealClearMarkets.com]
In the video below Mark Suster travels to Pasadena and Idealab for an exclusive interview with Idealab founder and inventor of the sponsored web search, Bill Gross.
VC FUNDS GROWING UP 97%
The total raised for new funds was $7.7 billion, according to Dow Jones LP Source. The capital going into VC funds was up 97 percent from a year ago, when they raised $3.9 billion. (Venture capital funds benefited from an overall influx of money into U.S. private equity funds overall, which attracted a total of $31.6 billion in the quarter, up from $13.5 billion a year ago).
Institutional investors and limited partners are putting more money into ventre capital, but are concentrating their bets in fewer, higher-quality funds. The money from limited partners, however, was not spread willy-nilly. Only 25 funds tracked by Dow Jones were able to raise money, the smallest number since 2003.
A few, well-known firms were able to raise substantial amounts. Bessemer closed a $1.6 billion fund, Sequoia closed a $1.3 billion fund, and Greylock added a $1 billion fund.
Early-stage funds attracted the most new capital, accounting for $3.9 billion of the total, up from $736 million a year ago. Later-stage funds collected only $1.5 billion, and multi-stage funds raised $2.3 billion.
European VC funds didn’t do so well, raising only $653 million across five funds, down from $1.3 billion a year ago across 13 funds.
Source: Read More>>>>
Three leading New York venture capital firms provide their strategies for 2011.
Among the issues discussed:
- What types of companies will VC`s fund in 2011?
- What are the hot sectors for 2011?
- What characteristics are VC`s looking for in an early stage company?
- How robust is the start-up community in New York City?
- What is the likelihood of a recovery of the IPO market and how does this affect a VC`s strategy?
- How is the rise of the “super angel” affecting VCs?
- VC funds have had a weak ten year period overall (with the industry, though not all funds, being down for the period). How is this affecting the VC`s ability to raise fresh funds?
- Given the “lighter” startups, is the average VC investment decreasing in size? Is the average VC fund size decreasing?
- What is your specific investment strategy for 2011?
- What are the other hot trends in venture capital for 2011?
Those whose investments drive understanding, can lead us to understand the key issues facing any future healthcare reforms.
Interview and discussion with Dr. Robert Glassman of the OrbiMed Advisors. He talks about the health-care reform President Obama is pushing. (Bloomberg News)
OrbiMed is the world’s largest healthcare-dedicated investment firm, with approximately $5 billion in assets under management. OrbiMed’s investment advisory business was founded in 1989 with a vision to invest across the spectrum of healthcare companies: from private start-ups to large multinational companies. OrbiMed manages the Caduceus Private Investments series of venture capital funds and a family of public equity investment funds.
Health care is the most difficult public policy problem there is…
1. How did we get the health care system we have?
… an unintended consequence of Franklin Roosevelt’s attempt to restrain inflation during World War II. His administration forbade wage increases; clever employers offered workers free health care instead. Ever after, health insurance was attached to employment in the U.S… Our whole health care system was an unintended consequence.
2. If we had a Canadian-style system (or British or French), would you give it up for what you have now?
Imagine that you were in a country that guaranteed coverage, where health care costs are 25 percent to 40 percent less, where life expectancy is higher; and where the costs of the system are not imposed directly on businesses.
4. Where did King Hussein of Jordan fly for cancer treatment?
To the United States.
But here is the wrinkle in the King Hussein story. He flew to Minnesota for treatment, not Miami or L.A. Why is that relevant? Because Minnesota is one of the places in the U.S. that spends significantly less on health care than the rest of the country, while getting similar outcomes (taking into account the pre-existing health of the population).
And King Hussein flew to the Mayo Clinic, which practices a form of medicine that doesn’t look like the rest of the American system. Physicians are paid a salary, rather than being compensated based on the quantity of procedures and tests they provide. The incentives are different. The costs are lower. And the outcomes are excellent. Good enough for a king, literally.
5. Should we scrap Medicare?
So if you are ideologically opposed to government-run health care, then I’d like to hear your explanation of how and why America would be better off without Medicare.
6. Can our health care system get worse?
Yes. …a large proportion of Americans think that their health care is just fine.
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