[foobarqux]

I guess the entire professional investment community is incompetent then for investing so little of their money in VC.

[garry]

Most professional limited partners typically do a small allocation (only a few percent) to VC overall.

[Brushfire]

There are a limited number of great, breakout startups, and they can only really utilize so much capital. Reallocating your pension fund doesn't magically create more amazing startups.

[foobarqux]

Scarcity should drive up the price and push net returns towards those of the broad market.

[ajju]

The thing you are missing is that it's really really hard to find the breakout startups. Even the top tier VCs don't know for certain whether a specific investment will be the breakout in their portfolio. They are betting that 1 out of n will be 1000x.

[dylanjermiah]

VC is a relatively small sector, it was ~50bn last year.