Is The Venture Capital Industry In Silicon Valley Efficient? originally appeared on Quora: The best answer to any question.
Answer by Jeff Meyerson, Host of Software Engineering Daily, on Quora
Inefficiency comes from the fact that founders are pressured to structure their business in a way that requires debt.
Venture capital firms are very efficient from the standpoint of partners and LPs but less efficient in terms of assisting founders, and providing net macroeconomic impact.