Isn't this flawed, though? If a venture company has a billion dollars in LP funding secured, then instead of having that 1 1 billion fund, they could have ten of the 100 million funds listed in the article. Sure, it's more work, but it's also, hypothetically, a vastly larger return, both for GPs and LPs. Not to mention, doing the billion dollar, lower-returning fund makes VC less attractive to the LPs that put up most of the money, as they're paying more in management fees for a lesser return.

It seems to me that funds getting larger is driven by a flawed expectation from VCs that large funds will perform as well as small funds, not based on a cynical extraction of money from their LPs, but maybe I'm mistaken.

Wouldn't getting 50% on a billion be a harder problem than getting 300% on 100MM.