Venture Capitalists Downsizing People And Funds

from the cutbacks-all-around dept

It seems it wasn't just the dot coms that over expanded the last few years. More and more venture capitalists are laying off employees, cutting back management fees, and shrinking funds. It seems that (as expected) the limited partners are beginning to get a little annoyed that they're paying the VCs so much money just to sit on their cash. We've spoken before about some of the smaller VC firms and corporate VC firms cutting back, but this article details what's happening at a number of larger firms. They even say that Kleiner Perkins is planning to stop investing its latest round, return the leftover money, and raise a new, smaller, round instead.