If The Average Venture Fund Loses Money In Aggregate, Then Why Do So Many VCs Still Exist?

For the same reason, people still visit Las Vegas, despite the losing gambit.

Limited partners spend less than single-digit percentages of total assets under management on venture capital, so they can afford to lose their allocation to venture capital, like some of us can afford to spend quite a bit of money in Vegas, despite the terrible odds.

The allure of winning big outweighs the deficit of losing.

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