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Challenges and Potential Solutions in the Venture Capital Market
The venture capital market faces challenges due to overvaluation, lack of regulations, and low liquidity. To improve the situation, real regulation is needed to allow retail participation and access for smaller investors. Market inefficiencies are caused by artificially high prices set by market makers and lack of demand. Over the next years, venture returns are expected to decline, leading to a shift in investor mindset towards seeking better alternatives like liquid funds that offer faster entry and liquidity.