The last decade hasn’t been a very good one for venture capitalists, showing poor returns for their investors. There are many reasons for this including over-expansion, poor management, and a dearth of companies going public. Now to make matters worse Congress is trying to take away the VC’s traditional greatest single source of income, called “carried interest” — their piece of the pie, so to speak. That is if there was any pie. I’m not here to defend carried interest, nor to condemn it. My purpose is to point out that the VC industry will just restructure itself to regain any lost income if carried interest is taken away.

Easy go, easy come.

Venture capitalists […]