A VC firm typically has many "funds" that are locked up for particular lengths of time. Since that money is locked up & they are taking a percentage off the to

A VC firm typically has many "funds" that are locked up for particular lengths of time. Since that money is locked up & they are taking a percentage off the top, as well as a portion of any profits on exit, there is very little incentive for them to liquidate & take a loss early, unless the invested-in company is close to going bankrupt anyway.