Nobody Wins When We Invest Too Much Money –

Ted Dintersmith is not your typical venture capitalist. A general partner at Charles River Ventures, he has become something of an industry activist when it comes to issues of capital overhang and investment pace. He and his partners jolted the industry in May when they reduced the size of their vintage 2001 fund by 63% to $450 million, by far the most dramatic cut by a billion-dollar fund. Even so, he now wonders if the cut should have been even deeper (more on that below).

To supporters, Dintersmith is simply a plainspoken guy trying to help save fellow investors from their own excesses. To critics, however, Dintersmith is overstating the problem. In a