Times are tough for venture capitalists too. You may have already seen the Sequoia Capital slide show that's been circulating for a few weeks now. It's pretty stark. You may also have seen the great Survival Matrix piece Fred Wilson posted the day before yesterday.
In a nutshell, there haven't been any IPOs for a while now. Liquidity events are rare. And we know that things don't look like they're getting better for a while.
And the VCs want the companies they're into to survive.
These days they're thinking a lot about burn rate, how much the companies spend every month. And runway, which is how long they'll be able to last, given their burn rates and the capital stowed away.
It's a simple calculation. Cash of a million and burn rate of 250K is a runway of four months. The longer, the better.