The falling returns to venture capital â Marginal Revolution
Eric Barker stashed this in Venture Capital!
The original blog post has an interesting point at the end: http://noahpinionblog.blogspot.com/2012/04/venture-capital-is-sucking-your-money.html
Venture Capital as a class does not have outsized returns, because the Winners in the class are offset by everyone else. What makes Venture Capital interesting is that there have been some consistent Winners over the last 40 years. And those Winners do consistently have outsized returns.