No VC of any meaningful size is interested in a $50m exit. Let's say as a VC you invested $3m and are holding 20% of the company at exit, that means you'll mak

No VC of any meaningful size is interested in a $50m exit. Let's say as a VC you invested $3m and are holding 20% of the company at exit, that means you'll make $10m. A 3x return is nice but not going to be fund-maker. If you're a $50m fund then you're expected to return >$150m, 10m will nudge you along to that target, but isn't going to be significant. Because a majority of your investments will go to zero or be small returners (1x-3x), it essentially means the good exits have to be >10x in order to be able to achieve reasonable returns for the fund.