But after a while you stop believing it. For fund investors, as long as the market soars, they will enjoy a big windfall. But if and when there is a downturn, they along with their funds may get punished. I am Philip Boroff, in New York for Marketplace. More on the market with Texas stock broker David Johnson in a few minutes.
Venture capital is a tough business.
You make a bet on an often long-shot concept. Two years down the line, five years down the line, maybe just maybe your seed money sprouts into a profit making operation. 1996, it turns out, has been a banner year so far for companies looking for those with the cash and the stomach for such high-stakes investment. Price Waterhouse today released a finding that from January through September alone, seven billion dollars in venture capital was pumped into companies, that's close to the 7 and a half billion dollars invested in all of 1995. Computer and telecommunications high tech are getting a lot of that business.