Venture Economics and the National Venture Capital Association warned...

Venture Economics and the National Venture Capital Association warned that proposed regulatory changes in the accounting treatment of corporate mergers and acquisitions threaten the future of the M&A market. The two trade groups also reported that $7.2 billion was raised through acquisitions of venture-backed companies in the first half of 1999, compared with $8.4 billion raised in all of 1998. The increase reflects the continuing growth of acquisitions as an exit strategy for venture capital funds.