The shrinking VC

Renowed VC Alan Patricof leaves Apax to start a new — and small — fund: $50 million vs. Apax’ $20 billion that will be invested in only 12-14 early-stage companies. I’m among those who’ve been speculating about a restructuring of the VC biz in a world where companies need less money. I’d say this is evidence of the transformation.

  • Terry Steichen

    Some are still in apparent denial – see http://avc.blogs.com/a_vc/2006/03/umair_is_wrong.html

  • http://avc.blogs.com fred

    i am not in denial Terry. i operate a 125mm fund. our investment in delicious was only $400k. i understand what’s changing in the VC business and what’s not. what is changing is that deal sizes and fund sizes are coming down. VCs are going to make less on their deals and entrepreneurs are going to make more. it’s a good thing really.

    another example of this, and possibly a better example than Alan’s fund, is Khosla Ventures
    http://www.khoslaventures.com/presentations.html