Venture Leasing: Startup Financing On The Rise By George Parker
According to Pricewaterhouse Coopers, investment by institutional venture capitalists in startups grew from less than $3.0 billion at the beginning of the 1990’s to over $106 billion in 2000. Although venture capital volume has retreated significantly since the economic “bubble” years of the late 1990’s, the present volume of around $ 19 billion per year still represents a substantial rate of growth. Venture capitalists will fund more than 2,500 high growth startups in the U.S. this year.
The growth in venture capital investing has given rise to a relatively new and expanding area of equipment leasing known as ‘venture leasing’. Exactly what is venture leasing and what has fueled its growth since the early 1990’s? Why has venture leasing become so attractive to venture capital-backed startups? To find answers, one must look at several important developments that have bolstered the growth of this important equipment leasing segment.