There is a quaint joint interview will billionaire bridge- and poker-buddies Bill Gates and Warren Buffett in the current Fortune magazine. Among other things (books, weight loss, philanthropy, and the S&P 500 outlook), Gates opines on the outlook for venture capital:
GATES: In venture capital there were very high returns with small amounts of money, and then very poor returns with large amounts of money. This desire to have high absolute returns—and seeing that places like Harvard University were cleverly in alternative assets—has led to this thought that “Okay, there must be something out there returning 10%. I just haven’t found it yet.” So the fact that expectations of returns exceed reality, that’s still true today.