VC as a category is not meant for stable returns — the goal is to find breakout successes with power law returns that return the entire fund. VC LPs (like the Y

VC as a category is not meant for stable returns — the goal is to find breakout successes with power law returns that return the entire fund. VC LPs (like the Yale college endowment) allocate only a small portion of their AUM into VCs knowing this.