Yes for normal companies this is fine, but for VC companies? How long do VCs let companies slog along before the pull the pin? It would seem not that often.
The Limited Partners could force the dissolution of the fund after ten years--the remaining assets, including any private company stock, would be distributed to the LPs--but they generally don't want to deal with direct ownership of the equity of a company going sideways. VCs are usually better at finding creative ways to sell their piece of a business for some small amount of money, so they would rather the VC take the responsibility for it.