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It means the three that have a liquidity event only need to cover 5/10 instead of 7/10.

Is that not a helpful result?

Ha, venture math is pretty hilarious. VCs basically need to give back their investors a 300% return in 10 years to make up for the risk they handle. Eg. For a $40M fund that's trying to grow to $120M, $1M here and there doesn't really move the needle.

The public NASDAQ has grown to 4x over the last 10 years. VC should do better or go home.

Not quite. People invest in VC funds exactly because these returns are not correlated to the market (well, they sort of still are).

It's diversification; people investing in these funds are generally NOT looking for similar returns to the public market.

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