Venture Capital: VC veteran, Tom Simpson of Northwest Venture Associates says fund model 'is broken'
| September 7, 2007 |  View for printing |
One of the oldest venture capital firms in the state will not raise a new fund, a decision that Northwest Venture Associates http://www.nwva.com/ founder Tom Simpson said was driven in part by the tough economics now facing venture capitalists.
"I think the fund model is very broken for a variety of reasons," Simpson said. "One, there is just too much money out there. ... As a result, valuations are getting bid up.
"Number two, you are seeing a huge number of 'me, too' companies being formed. ... Thirdly, the exits, quite frankly, just aren't there. How many IPOs have there been in the Northwest in the last year and a half?"
By JOHN COOK P-I REPORTER
Full Story: http://seattlepi.nwsource.com/ventur ... ?source=rss
No reader comments so far. Be the first to comment by clicking the button below.
Reprinted under the Fair Use doctrine of international copyright law. Full copyright retained by the original publication. In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.
