Tech VC Firms Shrinking

At the end of the tech boom in 2000 there were about 441 technology venture capital (VC) firms actively investing in new companies. A recent estimate puts the current number of active technology VC firms at about 86. To arrive at this number, Mark Suster, manager of venture capital fund-of-funds Flag Capital, eliminated all technology VC firms that have not invested in at least four new investments with at least $4 million invested in the past year. Even though there were only 86 active VC firms in 2012, it is actually an improvement from the 75 active firms in 2011.