VC is private equity, so generally we do not know who invests in whom. But many of the ways that VCs receive investment are through highly diversified means.
VC is some fractional line item allocation for diversified investors. The Sultan of Brunei or whatever is not calling Fred Wilson to yell at him about how USV is performing, unless the Sultan invested directly for some reason. The Sultan has 7% of the 5% of his funds that he handed to his asset management guy at investment bank X to handle.
It's possible that the asset management guy will yell at Fred Wilson about Zynga being a turkey, but not likely, because that fraction of the Sultan's money was supposed to be high risk anyway. It is playtime fun money for him anyway.
Similarly, CALPERS bureaucrats do not actually need to show a stupendous return -- they just need to maintain the appearance that their allocations have the possibility of providing a stupendous return. They won't get fired if they tried to hit 8% and can show that some model shows that according to previous decades of performance they were on track to hit 8% until some act-of-god prevented it from occurring. Their VC allocation helps them maintain this appearance so that they can maintain their 3rd wife to the lifestyle she has become accustomed to and continue to golf.
VC is some fractional line item allocation for diversified investors. The Sultan of Brunei or whatever is not calling Fred Wilson to yell at him about how USV is performing, unless the Sultan invested directly for some reason. The Sultan has 7% of the 5% of his funds that he handed to his asset management guy at investment bank X to handle.
It's possible that the asset management guy will yell at Fred Wilson about Zynga being a turkey, but not likely, because that fraction of the Sultan's money was supposed to be high risk anyway. It is playtime fun money for him anyway.
Similarly, CALPERS bureaucrats do not actually need to show a stupendous return -- they just need to maintain the appearance that their allocations have the possibility of providing a stupendous return. They won't get fired if they tried to hit 8% and can show that some model shows that according to previous decades of performance they were on track to hit 8% until some act-of-god prevented it from occurring. Their VC allocation helps them maintain this appearance so that they can maintain their 3rd wife to the lifestyle she has become accustomed to and continue to golf.