Return Of The Billion Dollar Venture Fund

from the double,-double,-toil-and-trouble dept

At the height of the bubble years, it seemed like every other venture capitalist was raising a billion dollar (or more!) fund so that they, too, could feed cash into the IPO generating system of Silicon Valley. However, after the bubble collapsed, and VCs realized that they couldn’t find enough places to put their money to get a reasonable return (long term investing be damned), they ended up giving billions back to limited partners who weren’t too thrilled with their venture investing buddies. However, the big institutional investors simply don’t know what else to do with the money they have earmarked for high risk investments, so when the VCs (the same ones who did nothing with their money) come back again on their usual fund raising trips, the institutional investors open up their wallets. Thus, it’s no surprise to hear that, now that the tech world is heating up again, NEA is the first VC firm in years to raise a new billion dollar fund. They won’t be the last, however. Expect many of the big name funds to start announcing similar funds in the relatively near future.

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