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 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. Read These Next Iran's supreme leader makes first public comments since ceasefire. New Fox star, 23, misses first day after car troubles. Her blood isn't compatible with anyone else's. Man accused of killing his daughters might be dead. Report an error