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Summary:

In a blow for Boston’s reputation as a tech and startup hub, venture-capital firm Greylock Partners is moving its headquarters from Boston t…

imageIn a blow for Boston’s reputation as a tech and startup hub, venture-capital firm Greylock Partners is moving its headquarters from Boston to Menlo Park. Greylock Partner Bill Helman (pictured, right) said in the release that the company wants to be closer to where “technology and innovation are thriving” — in other words, it wanted to be more in the deal flow.

Greylock will beef up staff at its new headquarters, and will move partner Don Sullivan to Silicon Valley to continue to oversee the firm’s operations there. Its current headquarters, in Boston, will remain open and continue to oversee investments made by that office, including Red Hat, Constant Contact, OutlookSoft and ZipCar.

Many venture-capital funds are finding the fund-raising process challenging this year, but to move headquarters out of a city is an unusual. Boston has a fairly thriving VC community for an East Coast city its size. In addition to Greylock, it is home to Atlas Ventures, Bain Capital, Spark Capital, Charles River Ventures, Polaris Ventures and a number of other funds. Despite what Greylock says, some may inevitably see the move as a sign that venture deals in the Northeast are drying up.

  1. Boston is DEAD! When is the last time a great web company came out of Boston? What a joke!

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  2. Take a look at their website. Every single Greylock team member from Boston specializes in "Enterprise Software". I have never met one Greylock member at a Boston Web or Mobile event nor has any lawyer, accountant, entrepreneur ever offered a Greylock introduction. This sullivan guy seems like the only person under 65. It is no wonder why their local dealflow may have dried up…

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  3. I have worked with Greylock on 3 different companies (DoubleClick, Panther Express and Music Nation) and I think they are a VERY good firm – one of the best. I think the reality is that there is more deal flow in SF than in Boston and more deal flow in NY than in Boston. This is a good move although i think they should have a partner in NY.
    Bill Helman in particular is fantastic – accessible and smart – works all the time.

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  4. Boston is sick - But not dead Saturday, May 30, 2009

    I think the best way to describe what is going on in venture investment in Boston, is that we are sick, but not dead. We need to purge ourselves of the bad, and bring in more of the good. Helman and Greylock were part of the bad. They were part of that tight, fraternal, closed minded, HBS oriented, GM-like club that is killing the entrepreneurial spit in Boston… Glad they are gone.

    We do need help here… We need outside help. Plenty of entrepreneurs in the Boston area are not part of the disturbing club described above, and just need a chance.

    I am speaking to west-coast VCs. Please open offices here in Boston, and we will never forget it. We are ready and able to start great companies.

    We are not even close to dead.

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