That's a question venture investors need to ask themselves, because all available evidence suggests the industry is suffering from a dramatic oversupply of capital. Ordinarily, capital is the lifeblood of the venture business. Meanwhile, the portion of all venture dollars in 2017 that was invested in first rounds has fallen off steadily since 2012, according to our analysis of the data from Venture Monitor and the National Venture Capital Association (NVCA). The well-publicized multibillion-dollar late-stage investments in the likes of Uber and Airbnb are emblematic of this trend. Furthermore, the study shows that smaller funds outperform bigger funds and that none of the billion-dollar-plus funds it examined returned more than two times the investment.

Source: Forbes May 07, 2018 12:56 UTC