The ever optimistic NEA Partner, Pete Sonsini, is less so about his own industry
More venture capital firms are going out of business and the trend is accelerating.
Speaking today at SDForum’s Global Open Source Colloquium in San Francisco, NEA‘s partner, Pete Sonsini, didn’t sound very optimistic on his own industry.
“For the past 8 to 9 years, venture capital returns have not been there… It’s [the VC business] going to contract a lot,” adds Sonsini.
The venture capitalist pointed that at the height of the Internet bubble, there has been over 1,200 venture firms. In 2007, the number shrunk to 800, including 200 that were not very active. And today, only the ones posting good returns will survive.
Where are all those venture capitalists going? Retiring? Not quite.
“Some are going back into operations,” said Sonsini.
The advantage I see for an ex-VC to run your company is that s/he could ask her/his “friends” to fund it 
