OpenView, After Deep Layoffs, Mulls Returning Capital or Raising New Funds

OpenView Ventures’ sudden decision last week to lay off most of its staff and halt investments in new startups left one major question unanswered: what to do with the $570 million that endowments and other institutions recently committed to its latest fund.

Earlier Monday, the firm’s senior partners held all-day meetings to review their investment portfolio and discuss dueling proposals: In one scenario, partners would ask the fund’s backers to cancel their commitments and would reduce the size of the latest fund. In another, partners would seek the backers’ blessing to invest in some new companies despite a dramatic leadership change, according to a person with direct knowledge of the discussions.