Venture Capital Returns Will Come Down, Khosla Says

The video discusses the high valuations of tech companies, both public and private, and questions their sustainability. It highlights the importance of innovation and market size in determining valuations. The speaker explains that traditional valuation methods may not apply to ventures addressing large markets with proprietary advantages. The video concludes with predictions of a decline in venture returns due to recent hype, although disciplined firms may still perform well.

What recent trend is observed in the valuations of companies like Netflix and Facebook?

• A significant increase in valuations

• A dramatic decline in valuations

• A slight increase in valuations

• Stable valuations over time

What is a key factor that can justify large valuations in tech companies?

• The location of the company

• The number of employees

• The size of the market it addresses

• The company's age

How do traditional valuation methods fare as tech companies mature?

• They become more complex

• They become more accurate

• They often become less applicable

• They remain unchanged

What is the expected trend in venture investing returns due to high valuations?

• A decline in returns for the industry

• Stable returns across the board

• An increase in returns for new firms

• An increase in returns for all firms

Which type of firms are likely to continue performing well despite a general decline in returns?

• Firms that focus on small markets

• Firms that maintain discipline in valuations

• Firms that are less disciplined

• Firms that are new to the market