Editor’s note: This is the second article in a series by Redpoint Ventures principal Tom Tunguz examining trends in the public and private technology markets. He recently discussed four trends in the public technology markets. Today, he compares the current state of the US venture capital to historical norms.
The venture capital industry is in the midst of a contraction. Since 2001, limited partners have invested a median of $22B each year in venture capital. Over the last 3 years, those figures have dropped by 50% to $16B annually.