You are an LP: How would you rather see a VC invest $10 million? •  Fund I –  Makes 10 $1M investments –  Makes 2x their money on every investment •  Fund II –  Loses all their money on 8 and –  Gets 20x their money on the remaining 2 •  Fund III –  Loses all their money on 9 and –  Gets 50x their money on the remaining 1 •  Accel XI –  Invest $10M in Facebook at $100M post