"Broken" here is from the perspective of the investors in VC funds, it refers to a report available here: http://www.kauffman.org/uploadedFiles/vc-enemy-is-us-

"Broken" here is from the perspective of the investors in VC funds, it refers to a report available here: http://www.kauffman.org/uploadedFiles/vc-enemy-is-us-report.pdf http://www.kauffman.org/uploadedFiles/vc-enemy-is-us-report.... tldr; only 20% of the VC funds used by this one investor (the Kauffman foundation) returned more than average market returns over the last 20 years.