Referring to Figure 3.1, review the major developments that have affected the growth in the VC market in the U.S. Explain, for example, the impact of the Investment Company Act, ERISA’s prudent investor rule, the growth of institutional investing, and general stock market activity.

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Millions of dollars (log scale) Panel A $1,000,000 $100,000 $10,000 $1,000 $100 $10 $1 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017