News

Venture Capital: VC veteran, Tom Simpson of Northwest Venture Associates says fund model ‘is broken’

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/venture/330702_vc07.html?source=rss

Sorry, we couldn't find any posts. Please try a different search.

Leave a Comment

You must be logged in to post a comment.