One of the astute comments on this by Terence Lam: Terence Lam Stage one: invest $25K in 100 startups ($2.5M) Stage two: pick 20 of them and invest $100K in them ($2M) Stage three: pick 4 of the 20 and invest $500K ($2M) Stage four: pick 1 of the 4 and invest $5M in that ($5M) the "expected" exit value of a startup is different in different stage, and most often this is non-linear: the expected exit value increases quadratically when a startup move from stage one to stage four. $11.5M invested ;) (ignoring the management fee :p)

Another hidden benefit: startups in stage three or four may "acqu-hire" startups in stage one or two, and the VCs who know and engage with them are the good middlemen here to facilitate the deals.

Interesting in the video she says most funds don’t achieve 1x - is that true?

Because they are so heavily invested in them.