VCs are cleaning out their portfolios right now. It seems like there are 3 drivers and 3 methods to doing so. Implications are discussed. WHY ARE VCS CLEANING OUT THEIR PORTFOLIOS? Some companies should get the plug pulled on them. Silicon Valley is built off of a fail fast mentality and the constant birth and death of startups. There are some investments that have underperformed, misexecuted, or been hit hard by the current environment and can not raise cash and are getting shut down.