A Venture Firm’s Collapse Stokes Layoff Fears Among Startup Investors
The implosion of Boston-based OpenView has increased worries about job security among venture capitalists, who are more accustomed to layoffs at their startups than they are at their own firms. Recent departures from prominent venture firms are adding to the anxiety.
Earlier this month, when Boston-based venture capital firm OpenView told its limited partners it no longer planned to invest in new startups and was laying off a majority of its employees, the VC industry let out a collective gasp.
“It was so sudden, and it made you realize that all these funds are really fragile,” said Jenny Fielding, co-founder of early-stage venture firm Everywhere Ventures. “People see this as the catalyst for more to come.”
For the last decade, a career in VC came with the promise of huge returns, as technology startups raised record sums and a flurry of initial public offerings minted a new generation of VC millionaires. But OpenView’s sudden collapse, precipitated by the departure of several of its senior partners, cemented a growing fear among investors that a job in VC was far less secure than many of them had once imagined. Even firms that have raised funds in the billions of dollars aren’t immune to the challenges presented by higher interest rates.