Billions in vc Funding Continues Rinse and Repeat Process

May 12, 2016

In the tech world, the word billion may be losing meaning for some. Pando published a recent editorial called, While the rest of tech struggles, so far VCs have raised more this quarter than in past three years. This piece calls attention to the seemingly never-ending list of VC firms raising ever-more funds. For example, Accel announced their funds were at $2 billion, Founders Fund raised $1 billion in new funds, and Andreessen Horowitz currently works to achieve another $1.5 billion. The author writes,

“It was hard to put that [recent fundraising rounds] in context. I mean, yeah. These are major funds. Is it news that they raised a collective $4.5 billion more at some point? Doesn’t mean they’ll invest it any more quickly. All it means is that the two will still be around for another ten years, which we kinda already guessed. It’s staggeringly hard for a venture fund to actually go out of business, even when it wasn’t some of the first money in Facebook or, in the case of Marc Andreessen, sits on its board. [Disclosure: Marc Andreessen, Founders Fund and Accel are all investors in Pando.]”

As the author wonders, asking Pitchbook if it’s a “bigger quarter than usual”, our eyebrows are not raised by this this thought, nor easy money, bubbles, unicorns. Nah, this is just routine in Sillycon Valley.


Megan Feil, May 12, 2016

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