Giza venture capital fund manager Zeev Holtzman predicts a resurgence of venture capital investments in the first quarter of 2002.
Fourth-quarter VC investments by Israeli and foreign investors will total $370 million at most, Holtzman told TheMarker.com today. But he expects an upswing next year, partly due to a spreading feeling that tech stocks are bottoming out.
Venture capital investing is long-term, he pointed out, hence the Nasdaq's rally in recent weeks helps, but it won't change the fundamentals. When investors believe that tech stocks on Wall Street have sunk as low as they'll go, then they'll start seriously trolling for opportunities.
Speaking at the business conference taking place in Tel Aviv, Holtzman predicted that the primary market on Wall Street would reopen during the second half of next year.
Meanwhile, he expects the crisis to lead Israeli venture capital funds to consolidate, leaving perhaps 15 powerful funds, with the rest being swallowed up or folding. The acid test will be whether the funds can raise commitments for sequel funds in 2003, he said. Either they do, or they die.