Let's say you're an early stage VC with $1B. You invest in every company that is closing a seed round for the next 20 years starting from 1995. That's about 20K companies. Let's say you invest $50K for 1% and by the time the companies IPO or get acquired it drops to 0.25%.

Just with Google, Amazon and Facebook, you're looking at almost $3T. That's about a 10% yearly return. Just with those 3 companies. That means you'd be beating Sequoia Capital, (the best VC ever) which has annual returns of 12%. Why is there no one doing this? Seed stages require very little due-diligence. Please don't tell me this is YC's thesis because it's not. Just like every other VC they're extremely picky. They just happen to invest in companies without an intro.

Edit: btw, if you run the same experiment from 1965 to 1985, the returns are even more staggering, since there were way less VC deals at the time but an equal amount of great companies (Intel, Microsoft, Apple). Also $50K would get you 10 times more shares.