Perilous venture

Is there too much capital in venture capital? This question may seem silly in the wake of the smashing success of YouTube. Sequoia, the sole backers of the video web site, earned an estimated 35-fold return on its investment in less than two years. But one redwood doesn’t make a healthy forest. Indeed, the best decision could be to return committed capital to investors, as Sevin Rosen funds recently did. Evidence of a VC bubble is necessarily circumstantial. It can take a decade or more to comp...