The exit that's required for the venture capital fund to get the capital back and make a profit comes from either selling to a strategic buyer or doing an IPO of the business. That's not happening these days, which means that venture capital funds today... I can tell you that's the way we approach it at BDC. We need to put enough money aside to take the company we're investing in at the start all the way to cashflow positive, because there just might not be an exit. The markets may not be open. So you've got to be able to go through all the way to the day when that technology company is cashflow positive. That means you need to put a fair amount of money aside.
On November 25th, 2009. See this statement in context.