Too Much Venture Capital?

There are lots of blogging venture capitalists and the theme among their posts this week is whether or not there’s too much venture capital. Paul Kedrosky answers why there are so many VC bloggers and then comments on Howard Anderson’s (a founder of Yankee Group and Battery Ventures) analysis of too much money chasing too few deals and links to a Business Week article along the same lines. Brad Feld has a post as does Fred Wilson. From personal experience, there is a boatload of money out there right now. Although the past couple of weeks have been quiet, from January through April I was getting several calls a week from VC and private equity firms asking if they could give me lots of money. Big funds, small funds, brand names, newer names – all needing a place to invest. But this is surely cyclical. I get the feeling we’re a few months away from a Venture Capital is Dead cover story in Business Week and the LPs who invested when there seemed to be too much capital will reap great returns.