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Is this true?

The Silicon Valley trade is also pretty close to being zero-sum. Even on a purely financial basis, if you add up all the profits from successful investments, they barely cover the losses on all the unsuccessful ones. A few big-name angels and VCs can do OK for themselves, but in aggregate the industry of investing in startups does not make money.

If it's true, that will strongly influence my opinion of the startup scene.




According to Fred Wilson of Union Square Ventures, ten-year venture capital returns lag major stock indices:

http://avc.com/2013/02/venture-capital-returns/

That's pretty bad, and it's even worse when you consider that VC is a lot riskier than buying an index fund.


That's very informative, thanks!




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