How VCs Are Coping With the Downturn

You can almost see the IPO market crash into a wall. Bankers pulled off 22 deals in the first quarter of 2008, according to IPOhome.com. That figure fell to 14 in the second quarter and to just seven last quarter. Now, the lights have been turned out. There has not been a single TheStreet.commajor deal since August, and the freeze is likely to persist through at least the first half of 2009 as well.

That has left many to wonder how venture capitalists, or VCs, will cope. When they placed their bets in recent years, they were counting on an active IPO market to take their investments off their hands. Now, they are faced with the prospect of ponying up more dough just to keep these investments afloat. For any investments that are already operating at break-even. Read full story:

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