Time for VC’s to write down their portfolios. The same holds true for Private Equity portfolios. We led with VC’s in the title because venture-backed valuations bear little resemblance to any economic reality whereas private equity valuations are largely grounded in reality. Public company valuations are not going to snap back to normal. The U.S. economy will not enjoy a quick “V” recovery. Real damage – much of it self-inflicted – has been done. It will take multiple quarters for a recovery to gain traction once we have bottomed (we have yet to bottom). Venture portfolio valuations ought to reflect this reality.