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 A lot of difficult conversations are in the works for startups in the portfolio of Redpoint Ventures, as the Silicon Valley venture capital firm gave its startups orders to trim 10% of their staff. With few exit opportunities for venture capitalists, Redpoint is letting its companies know that new funding might not be there for all of them, founder and general partner Geoff Yang told Bloomberg. At a meeting of its limited partners and portfolio companies last week, Redpoint recommended that its startups rank the performance of their staff and eliminate the bottom 10% and further advocated "zero-based" personnel decisions during performance reviews -- asking whether each employee would be hired again if he or she were applying for the first time, the news service reported. Redpoint's move follows in the footsteps of an internal survey by Sequoia Capital that took a hard look at which companies the firm would be willing to continue funding as the recession worsens. Both Redpoint and Sequoia exemplify a trend highlighted in Thursday's Wall Street Journal about Silicon Valley startups shutting down. - George White See Bloomberg story See Dealscape post on IPO market CategoriesPrivate capital video
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