The VC fund doesn't "need" to "make up for it" in the risk sense, but the limited partners can and do put pressure on the VC when a portfolio company takes a bi

The VC fund doesn't "need" to "make up for it" in the risk sense, but the limited partners can and do put pressure on the VC when a portfolio company takes a big hit. Whether that trickles down to the other portfolio companies is a separate question.