Money / venture capitalists Sinking Market Forces New Venture-Capital Strategies Analysts don't see money drying up, just more scrutiny on where it's spent By Jonas Oransky, Newser Staff Posted Apr 3, 2008 4:25 PM CDT Copied Apple CEO Steve Jobs, left, hugs venture capitalist John Doerr, right, with the investment group, Kleiner, Perkins, Caufield & Byers. (AP Photo/Paul Sakuma) Venture capitalists are watching economic indicators carefully, trying to find safer places to put their mountains of money, CNET reports. The stats on first-quarter VC activity will land soon, and though experts don't expect dollar totals to have waned, players are “under pressure to invest in quality companies that have a clear business model,” one watcher said. The number of venture-backed deals is way down, CNET adds. VCs are looking twice at “new start-ups like two guys in a garage,” another expert explained—and older companies need additional rounds of financing to stay afloat. And a Microsoft-Yahoo merger would hurt, analysts believe, as there would be one fewer giant company to snatch up start-ups. (More venture capitalists stories.) Report an error