As winner of the Carrot Capital Education Foundation Business Plan Challenge, Tom Szaky was in position to get venture capital funding for Terracycle, a start-up business focused on the organic plant fertilizer market. However, as discussions with the firm’s potential VC backers progressed, the two sides clashed over spending priorities, the need for specific cash flow projections and milestones, and composition of the management team. As described in Canada’s “National Post”, despite having only $500 cash on hand at the time, Terracycle ultimately did not go the VC funding route, but instead was able to use the resulting PR to attract a smaller level of angel funding.
Q4 ’08 Venture Capital Fundraising Drops to $3.3 Billion
According to the National Venture Capital Association, 43 Venture Capital funds raised $3.4 billion in the fourth quarter of 2008, down sharply from both the previous quarter amount of $8.4 billion, and the fourth quarter of 2007 ($11.7 billion). Mark Heesen, president of the NVCA, said he expects the slowdown to continue well into 2009, until economic conditions improve, and institutional investors can “recommit with confidence.”
Tags: Mark Heesen, NVCA, venture capital