Downsizing at Menlo Ventures

January 5, 2011, 11:34 PM UTC

When Menlo Ventures closed its eleventh fund last October with $400 million, there were questions as to whether the firm would downsize. Not only was the new vehicle far smaller than its $1.2 billion predecessor, but it also was far short of the $600 million Menlo Ventures had hoped to raise (with an $800 million ceiling).

The firm’s website still lists nine managing directors, but Fortune has learned that three are not participating in the new fund.

Investors were informed during fundraising that Hal Calhoun and Arvind Purushotham were out, while Sonja Hoel Perkins decided to step back later in the process.

Menlo did not return a request for comment, so let me offer some unsolicited advice: Drop the inactive partners from your website, or at least identify them differently (managing partner emeritus?).

I understand that each of the three may still represent Menlo on the boards of existing portfolio companies, but the current structure would not give aspiring entrepreneurs any idea that someone like Sonja isn’t sourcing new deals. The purpose of a website is to inform, and in this case, you’re obfuscating without any obvious benefit.