Kauffman

The Kauffman Foundation has published a fantastic report on US Venture Capital – see http://bit.ly/18yQrA5

Over a 20 year period, starting in the early 90’s, only four of thirty venture capital funds with committed capital of more than $400 million delivered returns better than those available from a publicly traded small cap common stock index.

The irony is of course that without the value-destroying venture capital sector the returns available in the traded small cap would be much lower because there would be far fewer companies in this sector, and much less development capital.

The LPs losses are the the US economy’s gain. If I were them I would be looking for some serious tax breaks for this collective act of economic charity.