There are many venture capital and private equity managers that are still in business, and interested in reviewing things, but when push comes to shove they do not have the capital.
Recently LCC had a series of meetings with a well known PE manager in Australia. After some weeks, however, we learned that the investor had enough money to pay their fees, but little else. Additionally the planned new fund that that manager had for 2009 was put on ice.
So early in any discussion make sure you are aware of the investments that the party you are holding discussions with have made, and additionally what their free cash for each investment is.
