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Interview: George Zachary, Partner At Charles River Ventures, On The Google Effect In VC

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imageCharles River Ventures recently raised a $320 million fund, no small feat at a time when other VCs are struggling to raise additional money. The Boston-based venture firm has been investing in early-stage companies since the 1970s, including CIENA, Sonus and Stratus Computer. George Zachary, a partner at the firm, has led investment in portfolio companies including Shutterfly and Ovation Entertainment, and currently oversees CRV’s stake in Twitter, Yammer and SocialMedia, among others. In our interview, he talked about how Google (NSDQ: GOOG) contributed to a venture bubble, the differences between the Boston and New York venture communities, and the Twitter eco-system. Below is an excerpt from our conversation:

It’s a tough funding environment — funds may actually flow out of VCs over the next few years. What are you hearing from your limited partners?

The consistent thing we heard from our LPs was this was going to be the first real period of venture shakeout where people who haven

5 Responses to “Interview: George Zachary, Partner At Charles River Ventures, On The Google Effect In VC”

  1. anonymous

    furthermore, george zachary invested in geni 2 years ago at a $100 million valuation (!). and then he invested in yammer which was a spin out of geni but had some crappy deal where you had to invest in geni which is why other vc's passed. big questions now is why anyone is listening to GZ about anything consumer related.

  2. curious

    that's absolutely the right question: what is crv's stake in twitter, how did they come by it, and why haven't they increased it or defended it? if they've been essentially betting against twitter, fine, stand by your bet.

  3. jenkins

    that's funny if true. all they care about is deal terms and hitting the home run yet few of them are truly qualified to make such judgments.

  4. anonymous

    i'd be interested to have CRV clarify their "investment" in twitter. rumor is that they just had a few shares left after Ev bought them out of their Odeo investment. Now they are taking credit for it even though their stake is tiny and they passed on investing in Twitter many times.