Venture Capitalists Sitting On $100 Billion

from the have-a-field-day dept

We’ve been talking for a while about how venture capitalists are sitting on tons of money these days. They raised so much money at the height of the bubble, and have no where to put it now, that there’s just a bunch of money sitting out there, doing nothing. This is the first article I’ve seen that puts a number on it, saying VCs are hanging onto $100 billion that should be invested somewhere. Some are afraid this will lead to a new bubble, in an area such as life sciences, since VCs will start feeling pressure to put money anywhere. Already there may be some indication that valuations in the the health and life sciences sector have started to head upwards. Update: And, just after I finished posting that article, I come across another one that says VCs are sitting on $75 billion. 75? 100? What’s the difference. The second article also points out that pension plans and other limited partner investors are still looking to put even more money into VC hands – which probably means they’re going to start feeling pressure to do something with the money they have.

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