Addicted to Risk

A reader predicts that shell-shocked venture capitalists won't stay on the sidelines for long -- they can't help it

Regarding "Is Dilution the Only Solution?" (Mar. 12, 2001): Interesting article. The VCs are playing the same game the entrepreneurs played previously -- holding the cards and naming high prices. However, numerous VCs have raised billion-dollar funds. Now, with optical-networking tanking, B2B showing only pockets of strength, Cisco's [potential] acquisitions not having a strong Cisco buying them, and data wireless not taking off because of very, very narrow pipes, where are the VCs going to invest their money?

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