Charles River Ventures did the unexpected this week – it announced a new fund in a fundraising market that is perhaps the most difficult in memory.
The $320 million CRP XIV will enable the firm to invest in new startups at a time when many other venture partnerships are reining back and marshalling resources for their existing portfolios.

The fundraising environment is difficult, says George Zachary
The investment opportunities are there, says Venture Partner George Zachary. Bandwidth demands to the home are growing as video spreads across the net – and corporate buyers, such as Cisco Systems, will need new hardware technologies to keep up.
Likewise, Web 2.0 continues to be interesting, as long as startups deliver utility to users and harness communities of members to hasten their development, says Zachary.
No one knows when the exits markets will improve. But young companies are showing they can become profitable on small amounts of money, says Zachary.
The reduced number of active venture firms may have another advantage. With the fundraising environment the “most difficult environment I’ve ever been involved with,” there could be a shakeout among VC firms, says Zachary. “There’s going to be a lot fewer people in the venture business.”
That means startups will face less competition.
Posted by Mark Boslet 






