"CRV's $500 Million Select Fund Returns $275 Million to Investors - New York Times Report"
In a surprising move, CRV, a venture firm with over 50 years of experience, has decided to return $275 million to investors from its $500 million Select fund, which typically supports later-stage rounds of existing portfolio companies. This decision comes as a strategic move by CRV partners, who recognized that investing in follow-on rounds of many companies could potentially lower the firm's overall returns.
According to CRV partner Saar Gur, in order for these startups to be profitable at current prices, they would need to eventually be valued at around $10 billion. However, the reality is that there are not many existing companies that could reach such a significant valuation. As a result, CRV has chosen to return a portion of the fund to investors and focus on other investment opportunities.
This move by CRV is not unprecedented, as the firm had previously reduced its fund size in 2002 following the dot-com bubble burst. Other notable firms, including Kleiner Perkins, Accel, and Redpoint Ventures, also made similar adjustments during that time.
Overall, this decision by CRV highlights the importance of strategic financial planning and adaptability in the ever-changing landscape of the financial markets. Investors should take note of how even established venture firms are making adjustments to their investment strategies in order to maximize returns and minimize risks. By staying informed and adaptable, investors can better position themselves to navigate the complexities of the financial markets and make informed investment decisions.