Venture Capital Returns Will Come Down, Khosla Says

Venture Capital Returns Will Come Down, Khosla Says

Assessment

Interactive Video

Business

University

Hard

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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.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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