Venture Capital is Alive and Well, Says NEA's Dick Kramlich at HBS ...

As Havard Business School professor Josh Lerner thanked the audience to conclude his interview of NEA Chairman and Co-founder Dick Kramlich, the keynote event this morning at this year?s?HBS Venture Capital and Private Equity Conference, Kramlich interrupted him. Speaking to a room of hundreds of business school students, Kramlich took care to reemphasize the point he wanted to drive home: ?The venture capital business is the largest single creator of jobs in the U.S.,? he said. And in his view it is alive and well.

Kramlich began his venture career in 1969, nine years before he founded NEA, in the period that he describes as beginning with Intel and ending with Apple. That period was a difficult one for the U.S. economically, with an oil crisis and years of ?stagflation? ? high inflation coupled with slow economic growth ? but Kramlich called the climate ?a great lesson? in how to succeed in venture capital.

As he looks out at today?s business climate, Kramlich sees huge potential in China, but cautioned his audience that taking advantage of the country?s opportunity requires serious commitment.

?I think they?re the sign of spring in the capital markets,? he said, speaking on China. But ?flying in and out doesn?t work.??The Chinese market can be prone to ?overheating? with so many investors looking at that market, so VCs have to ?have a longer term?point?of view.?

Asked about India, Kramlich was more tempered, citing greater complexity and layers of bureaucracy.

But for the venture industry overall, he was optimistic.

?We?ve gotten better practices,? he said. ?We?ve improved on our process over time.? Asked about sectors he favored, Kramlich compared venture investing to a buffet rather than a one course meal, saying that global funds like NEA would do well to look broadly across sectors.

But he doesn?t deny that the venture business is changing. For instance, he considers the rise of angel groups and ?super angels? as a positive development.

?We actually regard ourselves as partners to the angels,? he said. ?My religion is ?whatever is good for the entrepreneur is good for us.??

Source: http://bostinno.com/2012/02/18/venture-capital-is-alive-and-well-says-neas-dick-kramlich-at-hbs-conference/

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