News that venture capitalist funding of startups has increased in recent years is a sign that innovation in America is strong. However, the number of startups going public has decreased substantially since 2001. With less startups going public, venture capitalists are making less of a return on their investments. Small Business Trends reports on a situation which may result in decreased venture capitalist investment of startups in the future.

An article from Small Business Trends reports:

From 1991 to 2000, IPOs accounted for 17.7 percent of companies financed by venture capitalists five years before. In contrast, from 2001 to 2010, the number of venture capital backed IPOs was only 1.4 percent of the number of companies that were financed a half decade earlier.

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