Carlyle's Grady: Don't run out of money

Investor says VCs, startups should plan ahead as case credit crisis persists Bob Grady, who runs the venture capital arm of investing giant Carlyle Group, is of two minds regarding the current financial crisis.In the short term, it could help VCs on the investing side by bringing down startup valuations."There's been a big disconnect between entry and exit valuations," says Grady, a former investment banker who helped take 150 companies public with the San Francisco firm Robertson Stephens during the 1990s. With 90% of the exits for VC-backed companies coming through M&A deals in the last eight years, blowout IPOs that used to juice venture-fund returns are getting harder to come by, Grady says. Yet because VC firms are flush with capital after several years of strong fund raising, competition for early-stage ... [ Read more ]

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Vator TV | September 30, 2008

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