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
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