Venture Capital Loses Its Vigor - The New York Times

An air of serenity pervades 3000 Sand Hill Road, a campus-like cluster of office buildings that is the venture capital business's equivalent of Wall Street. More than 20 venture firms in plush offices here plot their next investments in Silicon Valley, a few miles to the south, hoping to pick the next Apple Computer or Genentech. At lunch, their partners congregate at the Sundeck, an airy restaurant in the center of the complex that serves ''venture burgers'' and puts pencils on the tables so customers can scribble the details of their deals on the placemats. But looks can be deceiving. The venture capital business is anything but serene these days. Profits for venture capitalists have dropped sharply and a shakeout is now gathering momentum. And fundamental changes in the business raise questions about whether venture capital, the pilot light of America's high-technology world, can continue to ignite innovation. Once a collegial business with a few dozen main firms, venture capital is

An air of serenity pervades 3000 Sand Hill Road, a campus-like cluster of office buildings that is the venture capital business's equivalent of Wall Street. More than 20 venture firms in plush offices here plot their next investments in Silicon Valley, a few miles to the south, hoping to pick the next Apple Computer or Genentech. At lunch, their partners congregate at the Sundeck, an airy restaurant in the center of the complex that serves ''venture burgers'' and puts pencils on the tables so customers can scribble the details of their deals on the placemats. But looks can be deceiving. The ve