During the last 36 months, the technology industry has undergone the most dramatic upheaval in memory. The impact of these events on the venture capital industry have been profound and will change the business for many years to come. EVCA figures show a marked shift of investment away from early-stage technology towards later-stage businesses, and a contraction of fundraising activity by over 40%. How will this impact venture capitalists and fund investors in 2003 and beyond?

The 2003 EVCA Technology Investment Conference took a hard look at the implications of these changes on our business. The first part of the conference focused on the impact these changes are having on venture funds and management companies. How are investors dealing with fund restructurings? What is the impact of consolidation of managers? How are fund investors reacting to changes in VC investment strategies and in VC business models?
A panel of leading institutional investors in technology venture capital provided insights into their current view of this asset class.

The second part of the conference covered developments in those technology
segments of most interest to venture capitalists today.

Where are the innovations in semiconductor technology? Is IT security still a safe investment bet? Will the launch of 3G services finally create real investment opportunities in wireless data? Are investors in material sciences getting too far ahead of the practical applications? What are the key developments in medical devices and therapeutics? Panels of leading industry analysts, venture capitalists, corporate representatives and customers discussed each technology area.

In the final part of the conference, leading practitioners and advisers engaged in a discussion about the practical issues facing VCs in this environment. How to deal with the pressure for increased transparency and disclosure in reporting? How are valuation practices and deal structures evolving, and what are best practices in this regard? What is the impact of changes in VC director liabilities and responsibilities? How can portfolio company management be best incentivised in a tough economic environment?

The 8th annual EVCA Technology Investment Conference took place in Amsterdam at the Hotel Okura from 1-3 October 2003.


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