VCs on Why Not To Invest in Venture

Ask a VC about the quality of their own firm’s portfolio, and the reply always contains a glowing review about the world domination potential of every investment. Ask about the venture asset class in general, however, and speakers on the VC Panel at this week’s Reuters Technology Summit got a lot more critical. It’s a pretty universal view that there’s too much capital available. And overall performance, well, it speaks for itself. “Venture returns have been poor for a decade, and I think risk-adjusted they will be poor for a long time,” says Khosla Ventures partner David Weiden. Going forward, he predicts, the very best firms will continue to perform very well, and the rest won’t.

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