Gurley explains that the financial crisis caused institutional investors to drastically reduce venture capital allocations.
“When the financial crisis happened, that model kinda came undone, and everyone has drastically reduced the amount of money they allocate to this category.”
Gurley cites 800 to 900 venture firms existed before the 2008 financial crisis.
“Some numbers say as high as 800 or 900 venture firms. When the financial crisis happened, though, in o eight and then another thing happened,”