Marc Andreessen’s got a wonderful 3 part series on Venture Capital over at Marc’s new blog. Most interesting to me was his explanation of why VC investment remains so robust despite what he said appear to be horrible average returns over the past 6 years. This seems to relate to new asset allocation theories for big players who place a small percentage of their staggering assets into VC funds to diversify their positions.

My quick reaction is that it looks like VC investment is something like raising Arabian horses – a fun hobby for the rich but not a good way to turn a buck.