The number of maturing venture capital funds heavily outnumbers those being raised as the industry contracts.

Venture capital (VC) is going through a deep crisis. While it is often supported by governments for its ability to create successful entrepreneurial companies, it struggles to attract a steady flow of private money.

A stark picture of the dramatic downsizing of the industry emerges from comparing the number of VC funds raised and maturing over the past dozen years (click to see chart).

The number of new funds raised since 2008 is tiny compared with the number…