The venture-capital industry has been going through many changes in the last decade. Each year, it seems to become more difficult for venture-capital funds to produce the returns that have made the industry famous. The average rate of return of venture funds has declined in the last 10 years and many are facing serious losses. That has led to a decline in the amount of funds flowing into the sector, especially when compared to the boom that characterized the period of 1997-2001 (fueled by an unprecedented number of internet and telecommunications investments).
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