U.S. venture capital needs a reboot

One thing they mention in the video discussion of this article ( http://www.youtube.com/watch?v=4Ue1pcNP6FQ ), which is not in the article, is that many investors are not able to get their money into the top tier VC funds. Yet these same investors have diversification strategies which compel them to slot a percentage of their capital toward venture capital. So many investors wind up giving that money to lower tier VC funds, many of which lose money.