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

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