The vast majority of venture capital firms fail to produce consistent venture style returns to their limited partners, as a renowned money-manager representing prominent limited partners as the investor in venture capital firms adamantly proclaims that number to be less than 35. From knowledge about those 35 firms, the majority of which reside in Silicon Valley, we personally estimate the number of successful venture capital firms with venture as the monolithic thesis (in non-diversified undiluted technology investments) to be no more than a handful.

The silent death of entrepreneurialism

Meaning, entrepreneurs with innovations that promise authentic social economic value that can produce outlier venture style returns have no more than five investors with some verifiable investment merit to choose from, or suffer the devastating consequence of uniform arbitrage that turns outlier entrepreneurial ideas inevitably subprime.

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