3 ms·

I guess the entire professional investment community is incompetent then for investing so little of their money in VC.

• Brushfire 12y ago
  There are a limited number of great, breakout startups, and they can only really utilize so much capital. Reallocating your pension fund doesn't magically create more amazing startups.
  • foobarqux 12y ago
    Scarcity should drive up the price and push net returns towards those of the broad market.
    • ajju 12y ago
      The thing you are missing is that it's really really hard to find the breakout startups. Even the top tier VCs don't know for certain whether a specific investment will be the breakout in their portfolio. They are betting that 1 out of n will be 1000x.
• garry 12y ago
  Most professional limited partners typically do a small allocation (only a few percent) to VC overall.
• dylanjermiah 12y ago
  VC is a relatively small sector, it was ~50bn last year.