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Venture Capital
by Greg Cruey on November 25, 2008
One of the tidbits you can glean from Washington Mutual's recent bankruptcy filing is that the bank wants to divest itself of its stake in 10 venture funds.
According to PE Hub, WaMu has about $36.5 million committed to the following funds: Arch Venture Partners (Fund V); ArrowPath Venture Capital (Fund II); Digital Partners (Fund III); FT Ventures (Funds II and III and a sidecar fund from 1998); Madrona Venture Group (Funds I and III); Maveron Equity Partners (its 2000 vintage fund); and northwest Venture Partners (Fund III).
The move by WaMu to get out of the venture capital business comes amid concerns that the VC model may be broken. I don't think I believe that the model is broken. A downturn hurts everybody. When the cycle moves on and the economy revives we may see different companies out there making venture capital investments, but the model will suddenly be unbroken...
Photo courtesy of iStockphoto, Image# 7388222
According to PE Hub, WaMu has about $36.5 million committed to the following funds: Arch Venture Partners (Fund V); ArrowPath Venture Capital (Fund II); Digital Partners (Fund III); FT Ventures (Funds II and III and a sidecar fund from 1998); Madrona Venture Group (Funds I and III); Maveron Equity Partners (its 2000 vintage fund); and northwest Venture Partners (Fund III).
The move by WaMu to get out of the venture capital business comes amid concerns that the VC model may be broken. I don't think I believe that the model is broken. A downturn hurts everybody. When the cycle moves on and the economy revives we may see different companies out there making venture capital investments, but the model will suddenly be unbroken...
Photo courtesy of iStockphoto, Image# 7388222
Permalink: WaMu Looking to Get Rid of VC Stakes
Trackback: http://publish.creative-weblogging.com/publish/mt-tb.pl/138594
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Vote for WaMu Looking to Get Rid of VC Stakes:
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Rating: 6.50 out of 2 vote(s) cast.
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Response from:
Ling
(11/29/08 1:08am)
I think its more of an irrational exuberance, rather than a broken model. You can't go about handing 2 or 4 million to some guy who doesn't have a sound business plan, but came to you through someone you know. That's easy money, and bound to go belly-up in a downturn.
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