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Venture Capital is a RISK asset class and a very optimistic style of investing. The objective of venture capitalists is to fund category defining startups with the potential to return the entire fund or more given that on average the maj...

Venture Capital is a RISK asset class and a very optimistic style of investing. The objective of venture capitalists is to fund category defining startups with the potential to return the entire fund or more given that on average the majority of the portfolio companies will fail. A VC does 'mitigate some risk' by investing in a portfolio of companies. However, the expectation is that 1-3 of the companies will drive the majority of the returns in the portfolio.