Venture capitalists look down amid slow economy.(Brief Article)

The economic slowdown is placing additional pressure on venture capitalists who now struggle with the increased likelihood of so-called "down rounds" in which a portfolio company's latest financing round puts a lower valuation on the company than a previous round.

"Down rounds are starting to happen," especially with companies that raised their last round of financing in good times and can't go public now, said Bill Elmore of Foundation Capital, one of three venture capitalists speaking on a luncheon panel at Banc of America Securities' week-long technology conference.

The more speculative companies are the ones facing down rounds now, but over time more solid companies could face the prospect of a down …