Venture-Backed M&A Surges.Mergers and acquisitions involving firms backed by venture capital continue to soar, despite the recent turmoil in Internet and other New Economy stocks. Research by Venture Economics and the National Venture Capital Association (NVCA NVCA National Venture Capital Association ) found that the total value of the deals completed in the first half of 2000 topped that for all of 1999 -- $37.5 billion, compared to $35.3 billion. The comparisons between the second quarters of this year and last year are even more striking. The number of deals rose from 53 to 69, and the value jumped to $20.4 billion from $4.9 billion. Computer software and services accounted for the largest number of deals, 23, though their total volume of $5.6 billion was topped by the semiconductor/other electronics category, with $7.5 billion. "M&A activity continues to be an important liquidity strategy for venture capitalists Venture Capitalist An investor who provides capital to either start-up ventures or support small companies who wish to expand but do not have access to public funding. Notes: Venture capitalists usually expect higher returns for the additional risks taken. ," said Mark G. Heesen, president of the NVCA. "However, contemplated actions by the Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). to eliminate pooling of interest Noun 1. pooling of interest - an accounting method used in the merging of companies; the balance sheets are added together item by item; this method is tax-free accounting could have a chilling effect  This article or section may deal primarily with the U.S. and may not present a worldwide view. on the high-tech community."
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