LPs fire them by no longer investing more money. An actual VC would get fired if they never made a good deal. And there's always the case of criminal actions (f

LPs fire them by no longer investing more money. An actual VC would get fired if they never made a good deal. And there's always the case of criminal actions (fraud, etc) but that's the exception. Other than that, venture capital is a high risk investment where 99% of the portfolio is expected to fail so it's not exactly a surprise when it happens. How are you going to prove that an idea was definitely going to be successful or not? If you know that then you should be a VC. The reality of portfolio theory means they only need a single big win to return all the gains, and the rest is just a reasonable attempt at disqualifying ideas and spending the money on things that might work.