Originally posted on TechCrunch:
Varied explanations for the growing herd of unicorns — and predictions of their imminent demise — abound. But all can agree: Those who invest in unicorns are chasing returns they can’t get elsewhere. And while venture capital is widely perceived to be fueling the unicorns’ growth, a closer look reveals that not all venture capital is really venture capital.
Data on VC fundraising shows a long-term decline in capital to VC funds, a trend I covered here. If less money goes in, less is available to be deployed.
Declining fundraising in the U.S. since 2007. 2009 marks the fewest funds raised in 16 years. 2009 was the low point in terms of dollars raised since 2003.
In 2014, Dow Jones reported that the amount of venture capital invested in the United States soared to $52 billion, from $35 billion in 2013, an increase of almost 50 percent…
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