I have always felt that every investment in a venture fund should be able to return the fund.
That doesn’t mean that they all will.
In fact, for many funds I have worked on, only one or two investments work out well enough that each of them can return the fund.
So if you have a $100mm fund, you need to look at each and every investment and ask yourself if the company delivers on everything they are seeking to do will that return $100mm to your fund.
It’s a tall order and doesn’t happen that frequently.
But if it never happens, you won’t be in the venture capital business for long.
