The Second Boom and Bust Cycle ‘92-’02

After achieving such a negative, greed-ridden connotation in the 1980s, the private equity buyout industry returned in the 1990s, after a short dormancy, with less use of leverage and a stronger focus on the target firm’s long-term development. Despite its relative lack of growth when compared to the buyouts market in the 1980s, venture capital had begun to take center stage by the mid-1990s. The turning point for VC was largely due to the mass appeal of the information age, the low interest rates of the late 1990s, and the overtly successful IPOs of many high-tech companies that are now household names like Google, Yahoo, Ebay, and Amazon.