People often forget that VC is a for-profit industry and that VCs invest money on behalf of investor who are looking for a return on their investment (Like pens

People often forget that VC is a for-profit industry and that VCs invest money on behalf of investor who are looking for a return on their investment (Like pension funds) and where there are lots of places they can put their money to work. With that in mind, 2/3rd of VC backed companies will fail despite the best wishes of the founders and VCs, which means that to get a market rate return 1/3rd of your portfolio must generate a 10x return after multiple rounds of dilution. What this means is that most opportunities are not venture backable because 10x returns are hard. You can invest in a company at a $10m pre and you need a company to get to at least a $200m valuation (again multiple rounds of dilution). The kind of growth prospects you need to command that are extremely high. VC can address some problems, but not all problems because the risk eclipses the reward. That’s okay. At least it can do something which most industries can’t do.