Earning Our Carry

As I suggested in a previous post, I think that it might be time for us – and by ‘us’ I specifically mean VCs – to stop complaining so much about the markets. There are ways for most (though unfortunately not all) well managed venture-backed companies, even those still burning cash, to survive downturns, and VCs need to earn their carry by helping their earlier stage companies get through the current turmoil.

Instead of bailing on their companies, VCs should pick up a bucket and start bailing with their companies. 

What ever happened to profits?

At last week’s NVCA Annual Meeting, there was a lot of talk about getting the exit market revved up again. The NVCA unveiled their Four Pillar strategy for getting the IPO markets back in action. I agree that regulatory relief would be helpful and it would be really great if we cultivated (once again) relationships with bankers, accountants and advisers whose livelihood is inextricably linked with our business. What was missing at the meeting, however, was a critical discussion of the underlying changes in the industry that are undermining our ability to create a viable crop of IPO candidates.