For the level of risk that seems about right. Remember an investor allocating funds to VC dos not have a financial objective to blow the stock market out the wa

For the level of risk that seems about right. Remember an investor allocating funds to VC dos not have a financial objective to blow the stock market out the water, it's to create a risk adjusted return that is not highly correlated to the market. Unfortunately most VCs are unable to accomplish this (though I have little doubt USV has had that problem). Also, to really calculate the return you should consider the method which VC funds call and return capital. It's not as though they just take the full amount on day one and return the gains (or losses) at the end of year 10. They have several transactions throughout the life of each fund.