Silicon Valley venture capitalists–who invest in startups with the aim of profiting later when those companies go public or are sold–have found it tough to produce returns recently. Not only have the markets been largely devoid of public offerings and M&A of their startup companies, many private company CEOs also are more reluctant to take their firms public given concerns over the cost and hassle of an IPO.

Now some venture-capital firms are trying to tamp down the anxiety levels over taking a company public.

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Venture capitalists view the decision by e-book pioneer E Ink Corp. to sell out to a Taiwanese company as one more sign of the moribund IPO market.

E Ink, of Cambridge, Mass., would once have been a sure-fire candidate for an initial public offering. Its sales more than doubled to $18 million in the first quarter on the strength of rising sales of products like Amazon.com’s (AMZN) Kindle and Sony’s (SNE) Reader, which use E Ink technology. But today IPOs are scanty, and venture capitalists increasingly look to the mergers-and-acquisitions market as their best exit.

E Ink president Russ Wilcox said after the sale announcement that it was easier for Prime View International, its Taipei-based acquirer, to raise money by going public there and in London than it would have been for E Ink to go public in the U.S. “This is an innovative way to get access to the public markets and grow the company at a very fast speed,” he said.

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They kept their Twitter feeds quiet and their iPhone cameras dormant. Most of them didn’t want their names to be used.

There was more than a little bit of paranoia in the air as the guests arrived at last weekend’s Summit Series event, formally the Young World Leaders Summit–not the most modest of names. It was a gathering of about five dozen under-35 entrepreneurs and executives at a beachfront luxury resort outside the glitzy vacation city of Cancun. Among those present at the retreat, which was fully paid for by sponsors, were a handful of executives from Facebook and other Silicon Valley start-ups, media and publishing entrepreneurs, young venture capitalists, edgy youth marketers, and jet-setting global issues advocates. As for an itinerary, there were snorkeling lessons, ample pool-and beachside chill time, and plenty of parties.

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