Action at TL causes ripples: Departure of five key figures at VC firm prompts concern, questions.(TL Ventures)(Brief Article)

When TL Ventures cut five of the seven venture capitalists in its Austin office, it surprised the victims and the investment community.

While the Wayne, Pa.-based venture capital firm is maintaining its Austin presence and relocating managing director Mark DeNino to Austin to oversee investments, the move has created ripples in the VC and entrepreneurial waters.

Gone from TL are Stan Tims, Rob Repass, Peter Norwood, Steve Yeich and Adam Green. Tims and Repass couldn't be reached for comment.

Paul Hurdlow, managing partner for the Austin office of the Gray Gary Ware & Freidenrich LLP law firm, says he's concerned by the developments at TL. Now, fewer avenues are open for entrepreneurs seeking venture capital because fewer people are at TL, he says.

"I may have a deal that could go to 10 VCs who are uninterested, but it may strike [a specific venture capitalist's] interest and get funded," Hurdlow says.

"As a guy who makes his living representing venture-backed companies, I am disappointed to see a source of capital drying up."

However, Hurdlow and others don't view the downsizing as evidence that TL will leave the Austin market entirely. By bringing in a top executive from the East Coast, TL is sending Austin a positive signal about its intentions to stay and invest here, says Newt Hamlin, former CEO of Austin's Vieo Inc., a TL portfolio company.