Seven Rosen, one of the leading venture capital firms, is refusing to accept investors' money citing “too much money” and “too many deals funded in almost every conceivable space.” The firm saw no changes on the horizon.

Seven Rosen was in the process of closing its 10th fund and had received commitments from investors of approximately $300M.

This is not the first time something like this has happened. During the Internet boom, Crosspoint Venture Partners also returned investors' money. Other firms followed suit.

What does this mean for the venture community in general and specifically for local Sacramento venture funds - DFJ Frontier, American River Ventures and Velocity Ventures?

Could it be a good thing for Sacramento in that Bay Area funds might have to look a little further from home to find good investments for their funds? Like maybe in good old Sac?

Gillian Parrillo
The Sacramento Executive