An interview with Craig Johnson, Venture Law Group:
Q: How much of a contraction will the VC community see around the country?
A: My guess is you will have a 70% to 80% drop in total VC from the top of the peak, but many of these funds had been keeping the same number of partners and massively increasing the amount of money they were managing. I think I saw another statistic that says the number of professional venture capitalists in the country increased from 4,000 to 8,000 over the past couple of years. My guess is over the next two or three years, that number will probably come back down to the earlier levels or slightly below.