{"id":13971,"date":"2024-10-02T09:02:52","date_gmt":"2024-10-02T09:02:52","guid":{"rendered":"http:\/\/medexperts.pro\/?p=13971"},"modified":"2024-10-02T09:26:13","modified_gmt":"2024-10-02T09:26:13","slug":"crv-a-venture-capital-firm-will-return-money-to-investors","status":"publish","type":"post","link":"https:\/\/medexperts.pro\/?p=13971","title":{"rendered":"CRV, a Venture Capital Firm, Will Return Money to Investors"},"content":{"rendered":"
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CRV, based in Silicon Valley, plans to return to investors $275 million because the market for mature start-ups has soured.<\/p>\n

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Venture capital firms raise money \u2014 lots of it \u2014 and invest it in start-ups in hopes of generating big returns. One thing they rarely do is give the money back.<\/p>\n

Yet that is what CRV, one of the industry\u2019s oldest firms, is planning. The firm will tell its investors this week that it will return the $275 million that it has not yet invested from its $500 million Select fund, which is designed to back more mature start-ups.<\/p>\n

The reason, four of the firm\u2019s partners said in a joint interview, is that market conditions have changed for the worse. The valuations for start-ups are too high relative to their potential for a payoff, the partners said.<\/p>\n

CRV\u2019s decision is part of a reset that is happening around the venture capital industry after the go-go years of the pandemic. In 2020 and 2021, many start-ups and investment firms raised outsize funding, expecting the boom to keep going.<\/p>\n<\/div>\n<\/div>\n

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In the years since, the tech exuberance faded, and many start-ups cut staff or shut down. The market for initial public offerings and acquisitions \u2014 the main ways venture capital firms earn a return on their investments \u2014 has also been dismal.<\/p>\n

Venture capital has always experienced booms and busts, but now, the boom and bust seem to be happening at the same time. While I.P.O.s have been infrequent and it has been hard to make strong returns for some investments, there is a frenzy to put money behind new artificial intelligence ideas.<\/p>\n

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CRV, based in Silicon Valley, plans to return to investors $275 million because the market for mature start-ups has soured.Venture capital firms raise money \u2014 lots of it \u2014 and invest it in start-ups in hopes of generating big returns. One thing they rarely do is give the money back.Yet that is what CRV, one of the industry\u2019s oldest firms, is planning. The firm will tell its investors this week that it will return the $275 million that it has not yet invested from its $500 million Select fund, which is designed to back more mature start-ups.The reason, four of the firm\u2019s partners said in a joint interview, is that market conditions have changed for the worse. The valuations for start-ups are too high relative to their potential for a payoff, the partners said.CRV\u2019s decision is part of a reset that is happening around the venture capital industry after the go-go years of the pandemic. In 2020 and 2021, many start-ups and investment firms raised outsize funding, expecting the boom to keep going.In the years since, the tech exuberance faded, and many start-ups cut staff or shut down. The market for initial public offerings and acquisitions \u2014 the main ways venture capital firms earn a return on their investments \u2014 has also been dismal.Venture capital has always experienced booms and busts, but now, the boom and bust seem to be happening at the same time. While I.P.O.s have been infrequent and it has been hard to make strong returns for some investments, there is a frenzy to put money behind new artificial intelligence ideas.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and\u00a0log into\u00a0your Times account, or\u00a0subscribe\u00a0for all of The Times.Thank you for your patience while we verify access.Already a subscriber?\u00a0Log in.Want all of The Times?\u00a0Subscribe.<\/p>\n","protected":false},"author":1,"featured_media":13973,"comment_status":"close","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-13971","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts\/13971","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13971"}],"version-history":[{"count":2,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts\/13971\/revisions"}],"predecessor-version":[{"id":13974,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts\/13971\/revisions\/13974"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/media\/13973"}],"wp:attachment":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13971"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13971"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13971"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}