A quick summary is:
- too many funds
- funds are too big
- too much capital chasing good deals
- good deal valuations too high
- holding periods too long
- too few exits, especially IPOs
- low exit valuations
The net of all this is, of course, low returns.
Nothing really new here - the travails of the VC industry are widely reported. But this is one of the best short summaries I've seen.
BTW if you don't follow Knowledge at Wharton, you should. Consistenly good information.