Here’s a riddle about the venture industry. VCs are raising gigantic funds, and valuations are climbing. But dollars invested haven't caught up.
There are a lot of reasons for this, first and foremost the relatively small amount of supply, aka companies to invest in.
It’s important to keep in mind amid growing questions about how long the boom will last.
Here’s another data point that bears on the sustainability of valuations and investments: The number of daily minutes an average U.S. adult spent on Internet-connected devices grew three times as fast as U.S. venture capital dollars from 2010 to 2013. (64% compared to 23%.)