For more than two years, we have been warning about the disappearance of venture capital funds. Now that everyone knows that it is a fait accompli, the industry has split into two factions. The first faction is made up of funds we can call "Zombie funds." These are funds that have run out of capital and whose investors are performing artificial resuscitation. Their offices have been closed, and their partners are searching for a new business model. The second faction is made up of the survivors - those who got lucky, or that still have another million dollars in the bank, which will enable them to survive another two years or so, until they raise the next fund.
It turns out that even the survivors are far from happy with the situation. A partner in such a fund who attended the "Globes" Israel Business Conference last week told us, "It's not pleasant to be alone. In the past, there was a community - there was always somebody to talk with. It was always possible to make deals together, to consult and reassure each other. This has almost completely disappeared. Now, when we need partners for new investments, we only search overseas. It's much less convenient to fly to California instead of getting together for half an hour over coffee."
To read the full, original article click on this link: Israel's venture capital funds are disappearing - Globes
