A lot more money could be flowing to promising startups. But it's not because some investors are disgruntled about VC's high risk, low returns, and scarcity of ways to cash out. And in the absence of a new wave of big tech innovation, investors have little incentive to part with their cash.
The nonprofit Center for Social Philanthropy reports that many institutions of higher learning were far from innocent victims of the economic downturn. Rather, risky endowment investing played a major role in the financial meltdown.
Universities' aggressive investment strategies cost them dearly in fiscal 2009. For the year ending June 30, endowments lost 18.7%, their worst decline since the 1930s. That contrasts sharply with another trend in higher education: rising salaries for university officers.