With the economy in it’s current state, things are also getting a bit testy between a couple VC firms over a Clinical Trial company in China. As we continue to lose ground here in the US with clinical trials, it appears the investments overseas can become a heated issue as well, although after reading the full story here there are some undertones to friendship and past business relations present. BD
The Carlyle Group, a U.S. investment firm that expanded into venture capital deals over the last decade, isn’t doing very well.
Last week, the firm slashed 10 percent of its 1,000 person staff and closed some offices, including the one in Silicon Valley. That office, in Menlo Park, Calif., had been open for less than a year and housed five investment professionals. The firm is basically abandoning its venture capital investment strategy. Its layoffs, meanwhile, were the first in the company’s two-decade history.
The firm has filed a lawsuit against Sequoia Capital, another U.S. venture capital firm. It says one of Sequoia’s partners wrongly derailed a $10 million Carlyle investment in a Chinese medical research company. It follows two other lawsuits by Carlyle.