A Note on Venture Capital Networks: Promise and Performance

Since 1984 Informal Venture Networks (VCNs) have been formed and are currently operating in several states and Canada. However, little has been written in regard to the performance of these networks. This article presents the results of preliminary research concerning their performance. Our research reveals several factors that are presently limiting the VCNs’ success and will continue to do so until diey are changed. The limited success of the VCNs to date is primarily the result of a lack of funding. Because of small operating budgets, most VCNs have only minimal amounts available for marketing and promotion. Until the VCNs are adequately funded, their high promise will not be matched by performance.