In order for venture-capital firms to invest in startups, they need funding from institutional investors. In many cases, such investors are happy to drop some cash in a fund. But a new study warns that doing so might not be the best idea.
The Ewing Marion Kauffman Foundation, an organization that promotes entrepreneurship by investing in venture-capital funds, found things might not be as bright as some firms would have investors believe. In fact, the organization found that over the last 10 years, the vast majority of venture-capital funds have failed to outperfom the public stock market. In the last … Read more