The Bay Area is coming to terms with the end of an era. The hottest VC firm you've never heard of. For individual investors who don't have a prayer of putting their money into funds that deal only with tech insiders, large institutions, and foundations, analyzing exactly how much the top funds make can certainly seem like an academic exercise. But it's important that somebody do it. Day of E-tonement Ouch.
Investors feel the pain.
This market is a bear, and it could get meaner. Much was made earlier this year of those triple-digit internal rates of return. Ever since the IPO rocketship crashed to earth, the pros have been asking themselves when, or whether, the new-issue game will revive. If bad ventures henceforth go unfunded, all the agony may have been worthwhile. The rumors reflect a misunderstanding of how venture funds operate.