NYTimes: Pessimism From Venture Capitalists

"It’s a dreary time for Bay Area venture capitalists. Investments are slowing and exits are stalled. Venture capitalists don’t expect the I.P.O. drought to ease until 2010, according to a new survey of dealmakers by audit, tax and advisory firm KPMG. Only 9 percent of those surveyed think I.P.O. activity will pick up next year and 12 percent predict it will never again reach historic levels.
A July 1 survey by the National Venture Capital Association found investors to be more optimistic, with 43 percent predicting that public offerings would pick up in the next 12 months. Only 5 percent thought it would take longer than two years. Still, they said that two-thirds of venture-backed companies were less likely to want to go public than they were three years ago. They blamed the drought on skittish investors, the credit crunch and the regulatory requirements of the Sarbanes-Oxley Act. "