According to a new survey by the National Venture Capital Association, next year will usher in a slowdown in investing across most sectors and a continued weakened exit market. To be specific, 92 percent of VC’s foresee a slowdown, compared with this year, which is expected to reach as much as $30 billion in investment by year end. And 61 percent believe the decline will exceed 10 percent and fall below $27 billion in 2009.

The outlook is not entirely gloomy, though. The life sciences sector offered the second-highest promising area for investment stability and maybe even a little growth, with 25 percent saying biotech investment will increase and 33 percent predicting biotechs investments will remain stable. And in medical devices, 24 percent say investment will increase and 38 percent foresee stable investment.

Just the same, almost all VCs - 96 percent, to be exact - predict it will be harder for new companies to get funded next year, and 93 percent believe that it will be harder to sustain existing portfolio companies in the coming year. Moreover, 72 percent do not expect the IPO market to re-open for
portfolio companies until 2010 or beyond (NVCA statement and charts).