"A VC firm is, first and foremost, an investment vehicle created to generate returns for investors that exceed those available in the fully liquid, low cost pub

"A VC firm is, first and foremost, an investment vehicle created to generate returns for investors that exceed those available in the fully liquid, low cost public equity markets. If that objective is persistently left unaccomplished, investors will allocate their capital elsewhere." Presumably the level of returns in the equity market is somewhat dependent on the amount of new business entering the equity market and therefore the on the amount of VC capital available, so it doesn't necessarily follow that you do expect to see massive profits from your overall VC investment if you are a large enough investor to consider it to be part of safeguarding your equity investments.