Venture capital and private equity funds find life tough

A slew of new data suggests mainland-focused venture capital and private equity funds may be finding the going tough after a dream run in past years.

The natural life cycle of these funds, from raising cash to investing and eventual exit, is now in jeopardy amid a drought in initial public share offerings because of a weak economy and poor investor confidence.

The dire scenario in the once highly lucrative venture capital and private equity sectors has made fund managers increasingly concerned about their own investments and divestments, sparking worries among investors that they would continue to do poorly this year.