Venture Capital Not an Asset Class
Sequoia's managing partner, Roelof Botha, stated that there are currently 3,000 venture firms in the United States, a significant increase from 1,000 when he joined Sequoia 20 years ago.
“Investing in venture is a return-free risk,”
Botha said during an interview at TechCrunch Disrupt 2025, arguing that the venture industry isn’t an asset class and that investing more money in Silicon Valley doesn’t lead to better companies.
Botha noted that venture capital is an asset uncorrelated with other asset classes, based on its history.
Author's summary: Venture capital is not a traditional asset class.