Times are particularly tough for VC funds. The IPO market is a ghost-town. M&A is muted -- with fairly low valuations. By all accounts, it looks like the returns for VC funds will be dismal.But, interestingly enough, this is likely the best time to start a VC fund. After all, it takes several years for startup firms to get critical mass. Plus, it's easier to structure juicy terms on deals.
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