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Flatiron, which invested almost $500 million in 57 technology start-ups, has written off investments in failed companies like Kozmo.com, Urban Box Office and Scout Electromedia.
They said New York was unfairly siphoning off investments from less-developed areas.
Executives live on fees for as long as possible while they sell off investments.
People who had been wealthy enough to live off investments and rental income no longer could.
The company said first-quarter net profit fell slightly as it sold off investments at a loss.
As with other forms of private equity, VCs usually find their exit (and hence their reward) by floating off investments through an IPO.
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But uncertainty is putting off investment.
These sacrifices have choked off investment and squandered human resources.
A technological advance, say, can set off investment booms.
Mr Morales scared off investment by nationalising the natural-gas industry, telecoms and parts of mining.
Doubters, though, have two prime reservations: First, that China has waited too long to wean itself off investment-heavy exports.
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