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To: schrodingers_cat who wrote (102806)	5/4/2000 8:00:00 PM
From: GST	Respond to of 164684

Cat: It is almost impossible to imagine how VC funds could fare well in the current environment. VCs need liquidity events to generate capital for new investments. With the IPO window all but shut, and with a stable full of skinny, hungry horses to feed, the real issue is whether the VCs will have the capital to keep their current investments viable -- and for how long. They might be forced to "merge" some of their pre-IPO plays to keep them from going bankrupt. With the flood of IPOs coming out of lock-up and with a shakey secondary market, the firms that have gone public will further shake the foundations of VC. Pre-IPO mergers, writedowns and bankruptcies are on the horizon. VC is called high risk for a reason.