Atlas Venture Reduces Fund, Staff

Atlas Venture has once again taken the axe to its sixth investment fund, this time chopping its size from $850 million to $600 million. Unlike what happened during a smaller cut this past June, however, the Atlas woodshed is now also home to some of the firm’s own investment professionals and satellite offices.

“The need for a larger restructuring is much more obvious to us now than it was six months ago,” says Christopher Spray, a London-based senior principal with Atlas. “We are trying to get a fund size that can generate the best returns… but a smaller fund means less revenue [from management fees], so we need to reduce expenses.”

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