I talk to lots of VCs. However, lately they have been fairly glum.
It's been a long drought since the dot-com implosion.
But, there are signs that things are improving. An example is Microsoft's (NASDAQ:MSFT) buyout of Tellme.
According to a report from Red Herring, it looks like the deal was a big score for Benchmark Capital and Kleiner Perkins Caufield & Byers. The investors got into the deal during the heady days of 1999. The round was about $47 million.
OK, so what was the return? It looks like about 6X to 8X. That's pretty good considering that there are many 1999 deals that are zeros.
No doubt, it's still going to take time for the VC business to get its footing. But, I have a feeling that within about five years or so it's going to be cool to be a VC again.
Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.
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