Interesting…take a look:
A quick summary is:
- too many funds
- funds are too big
- too much capital chasing good deals
- good deal valuations too high
- holding periods too long
- too few exits, especially IPOs
- low exit valuations
The net of all this is, of course, low returns.
Nothing really new here – the travails of the VC industry are widely reported. But this is one of the best short summaries I’ve seen.
BTW if you don’t follow Knowledge at Wharton, you should. Consistently good information.
Jay Jay Ghatt is also editor at Techyaya.com, founder of the JayJayGhatt.com and JayJayGhatt.com where she teaches online creators how to navigate digital entrepreneurship and offers Do-It-For-You Blogging Service. She manages her lifestyle sites BellyitchBlog, Jenebaspeaks and JJBraids.com and is the founder of BlackWomenTech.com 200 Black Women in Tech On Twitter. Her biz podcast 10 Minute Podcast is available on iTunes and Player.fm. Follow her on Twitter at @Jenebaspeaks. Buy her templates over at her legal and business templates on Etsy shop!