SAN FRANCISCO, Sept 13 (Reuters) - Tom Perkins, co-founder of Kleiner Perkins and the backer of companies ranging from Genentech to Google, believes much of the venture-capital industry has set itself up for failure.
"Mathematically, there's no way that all venture capital in America will make 10 to 1," or $10 for every dollar invested -- a fairly typical return in past years -- Perkins told Reuters.
There is too much money chasing too few companies, he said, and the increasingly large sums invested mean failures will hurt more.
Firms hit by outsized failures will find it hard to raise money for future funds, he said, leaving the playing field to a select few with the cash and experience to outperform, including his eponymous fund, Kleiner Perkins Caufield & Byers, and Sequoia Capital "and a handful of others."
To read the full, original article click on this link: Venture capital veteran Perkins sees danger ahead | Reuters
Author: Sarah McBride
