Venture Capital’s ‘I.P.O. Problem’

The venture-capital market is doing great — if the only measure is how much money venture funds are attracting. The problem, as venture capitalist Paul Kedrosky pointed out in his blog on Monday, is that the market is “not scalable.” His takeaway from a recent panel discussion hosted by the Venture Capital Journal was that there aren’t nearly enough initial public offerings to provide a profitable exit.