I am now, have been and will be wrong

In yesterday's capital connection lunch panel, one of the panelists noted that on the east coast people were drinking and smiling while on the west coast they were still drinking but were glum.
Maybe we're just slow here in DC.

The guy thought it was telling, especially with the reality that several partners had not made money for their LPs in years.

The culling we expected was going to happen after the dotcom bubble was going to happen now. After the tech bubble investors still had funds to invest with the growth of real estate and other investments to prop them up. Also, at that time alternative assets were considered a true investment class, one with a dedicated allocation. Investors were able to take some profits from one sector and put it into VC. Today, that is not the case. We can see LPs support a GP and still not cut a check. There might not be enough money in the pie to keep doing VC investments.

A lot of things are happening in the sector today. One thing I can say is it is not getting better anytime soon.