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Prism VentureWorks has suspended fundraising efforts for its planned sixth fund, a partner at the Needham venture firm confirms.
Prism will continue to invest and expects to make about three to five new deals, in addition to the approximately 28 deals it has made out of the $250 million fifth fund it closed in 2005, said partner Woody Benson. The target for fund six had been $275 million.
In addition to new investments, the firm’s investment team will focus on managing its existing portfolio, he said.
“It’s almost akin to a startup, when the CEO’s out trying to raise money and you know the markets are tough, you’d be better off staying at home minding the business,” Benson said.
Prism’s intention to stop fundraising was first reported yesterday on the website PEHub.com.
Benson did not specify whether Prism intends to return to fundraising when climates grow more favorable. “We’re just going to wait a period of time. There are going to be lots of opportunities for us. Different models may emerge,” he said. He declined to elaborate.
Meanwhile, Benson said the firm will seek to keep partners who are invested in the existing portfolio. “Our goal is to keep the person who did the deal on the deal,” he said. He declined to comment further on the possibility of staff cuts at Prism.
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