Behind the Venture Capital Boom: Public Pensions

The California Public Employees Retirement System (CalPERS) intends to to cut its venture capital exposure to 1 percent, from 7 percent of its private equity portfolio, over the next 10 years Photograph by Ken James/Bloomberg

Few agree as to whether there’s a bubble in venture capital. Bill Gurley says there is one, Marc Andreesen says there isn’t, and so forth. Either way, some journalists have been quick to note that if there is a bubble, it is different this time. Because venture capital is funded by private, wealthy investors, the thinking goes, at least mom-and-pop investors aren’t at risk.

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