The VC industry will probably shrink by 50% or more

Summary: The VC industry grew dramatically as a result of the Internet bubble. But VC is an “illiquid asset” so funds didn’t disappear quickly. The VC industry is shrinking. This means that some funds will disappear and funds that raise money will be smaller. Super angel and seed funds are proliferating and VC’s are doing earlier stage deals. This is producing a bubble in early-stage investing.