The NVCA annual meeting ended a few hours ago and there were several pieces of news that I thought were noteworthy. Normally, all the best content is saved for the last day, but not this time.
Outgoing Chairman of the NVCA, Dixon Doll has been spearheading research on the capital market crisis along with ideas on how to fix it. In case you weren’t aware of the crisis, check this out from the NVCA press release on the initiative:
During the last decade, the number of initial public offerings (IPOs) by venture-backed companies has declined to alarmingly low levels, culminating in the 2008 drought when only six companies entered the public markets. Given the proven contribution of venture-backed companies to America’s economic growth, the NVCA sought analysis and recommendations from leaders throughout the capital markets ecosystem over the last several months. The resulting set of proposals looks to the venture capital industry, investment banking, accounting professions, law firms, stock exchanges and the government to enact measures to restore a vibrant IPO environment once the overall economy stabilizes.
Perhaps the most amazing statistic coming out of the meeting was that venture-backed companies now account for over 20% of the U.S. GDP. Let that number soak in and say "wow." But more than just alerting us to the issues, Dixon and his group have come up with a Four Pillar Plan to re-energize the capital markets. The four pillars are Ecosystem Partners, Enhanced Liquidity Paths, Tax Incentives, Regulatory Review. The detail can be found in the presentation below, or on the NVCA press release.
I’m excited about what the NVCA is thinking about here. It won’t be easy, but we need leadership here and I’m pleased the NVCA is taking this lead.
On a personal note, I’m happy to say that I’ll be intimately involved with this and other NVCA initiatives as I’ve joined the board. It’s a great honor and I look forward to helping out in any way that I can.