> Having capital to invest in more start-ups reduces risks and increases the chances of the VC earning bigger returns. That's true up to a point, but only up t

> Having capital to invest in more start-ups reduces risks and increases the chances of the VC earning bigger returns. That's true up to a point, but only up to a point. You hit the point of diminishing returns pretty early. I wish it were otherwise but there's 40+ years of history that support that theory. It's not even that there aren't enough potentially great startups. It's that the venture business is a business that scales mostly with people. Each GP can credibly be a primary investor and board member in maybe 10-12 companies at a time. I don't think arbitrarily taking that number up to 20-24 would generate twice the returns, at least without the GP's head exploding in the process.