From Concept to Wall Street: A Complete Guide to Entrepreneurship and Venture Capital

Foreword

The venture capital industry went through a wild cycle in the late 1990s. Since its early beginnings in the 1950s, venture capital was really a cottage industry compared to investment banking, for example. There were only a relatively small number of firms devoted to early stage technology investments. The investment level, allowing for inflation, was stable.

The dot-com fever struck like a lightning bolt. The “new economy” revolution was on. If you didn't “get it” you would fall by the wayside. Money came pouring into venture capital and novices in the field created many new firms. Angel investors and Incubators became the rage.

To paraphrase Alan Greenspan, “irrational exuberance” prevailed. Then the bubble burst. Gone are the Angels. ...