The incentives are setup that way. If I were a VC with money from clients with me, telling them that I'm holding out for a good investment is a great way to lo

The incentives are setup that way. If I were a VC with money from clients with me, telling them that I'm holding out for a good investment is a great way to lose them next year. Money un-invested is stale capital that will definitely not earn anything back. That money could be lost on a venture - but nothing ventured, nothing gained. In some sense, they're really paid well to not hold back on investing it - only to be penalized if they do not assume risk on behalf of the client.