VC Collapse Still Hasn’t Hit Bottom; Firms Seek Safety Of Late-Stage Deals

Limited partners require results in today’s difficult climate. Firms with a sound strategy to take advantage of this current climate can have success. Longitude Capital’s partners say the firm’s late-stage focus helped it secure $385 million for its second fund. Split Rock Partners, meanwhile, remains an active investor in early-stage companies in technology and medical devices, investing from a $300 million fund raised in 2009. However, the firm has adjusted its strategy somewhat since raising that fund. Split Rock now is making direct secondary investments as well. The firm is focusing principally on its own portfolio for opportunities, buying out co-investors or executives who may need liquidity.