That's not strictly true. As long as interest rates are kept so low, there will be vast amounts of capital looking for any kind of return possible. The guys run

That's not strictly true. As long as interest rates are kept so low, there will be vast amounts of capital looking for any kind of return possible. The guys running the VC firms always make money as they get their 2/20 cut and people too rich to care will always invest in new funds. The sector as a whole is almost certainly not more profitable than a simple index tracker for the FTSE100 or similar.