Would you invest in an industry that loses on about 80 percent of its investments, makes a decent return on only 19 percent and have home runs on only one percent? Yes you would, if the one percent includes companies like Google, Facebook, and Uber where the return is in the billions.
The harsh reality is that only about one percent of venture capital investments are home runs and earn most of the profits of the VC industry. If it were not for this one percent of home runs, the VC industry would have been shuttered a long time ago.
http://www.forbes.com/sites/dileeprao/2015/11/27/why-is-venture-capital-not-more-productive-the-unintended-consequence-of-great-pr/
