Venture Capital returns are just not that attractive

8 percent returns for venture capital over the last 10 years,

compared
with −27 percent for the S&P 500 and

−28 percent for the Nasdaq,

the
Russell 2000, an index of small-cap stocks that returned 18 percent
over the same period.

only about 0.2 percent of the estimated 600,000 new businesses created
in the United States each year are financed by venture capital and
about 16 percent of the fastest-growing companies are, he found.

Another problem he cited was that information technology has matured to
the point that new innovations will not be hugely profitable and it
costs a fraction of what it used to to start an I.T. company.

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