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 factors contribute to the high valuations of tech companies?

How do you interpret the recent decline in valuations of companies like Netflix and Facebook?

What is the significance of addressing large markets in relation to company valuations?

Why might traditional valuation approaches fail for companies in their early stages?

What trends do you foresee in venture investing returns based on the current market conditions?