To me, the real question is to why VCs are interested in these kind of businesses at all given the scale they must achieve in order to make any money. Even if

To me, the real question is to why VCs are interested in these kind of businesses at all given the scale they must achieve in order to make any money. Even if they took 0.25% from the $1b they've got under management and they took 0.25% across all of it (which they don't), that's $2.5m. At $10b under management, they're making $25m - not exactly blowing the roof off from a VC point of view. Now, the argument they make is "we will sell them other products and services" - but that, to me, is wishful thinking. Especially with the big boys like Vanguard and Schwab coming in in a big way.