VC Fund Raising Still Slow - Because They Already Have Enough

from the stop-giving-us-money dept

A few weeks back I was talking to a venture capitalist who was in the process of raising a new round. Despite what you might think, he was saying it was ridiculously easy to raise money - because the institutional investors have simply allotted a portion of their funds for "risky investments" and they don't know where else to go. Thus, many VCs find themselves being pushed to take more money in some cases. He was even suggesting that many VCs are doing their best to hold back on raising funds, because they have too much cash already that they don't know what to do with. So, while it appears the tech market is picking up and VCs are investing in tech startups again (wisely or not), VCs are still holding off raising new money until they've had a chance to squander invest their current boatloads of cash.

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