I spent a good chunk of last week in Silicon Valley, speaking to venture capitalists who mostly wanted to regale me with tales of their portfolio prowess. Sunshine and unicorns all over Sand Hill Road.
When will these folks start getting nervous? Not about rising valuations, per se, but about their inability to get liquidity?
Unlike private equity peers who have been selling everything that isn’t bolted down, venture capital is in the midst of an overwhelming buy-and-hold paralysis. Only seven VC-backed tech companies have gone public so far this year, with just one more (Fitbit) currently on the pricing calendar for June. At this rate, 2015 could go down as the slowest year for VC-backed tech IPOs since the throes of the financial crisis. Moreover, there have been only two strategic sales of VC-backed tech companies valued at over $1 billion (Lynda.com to LinkedIn and Virtustream to…
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