Besides, sow do you know what where the investors willing? AFAIK, investors are normally willing to invest one hundred now and get one thousand several years later. In other words, investing 33M to get 330M 5 or 10 years later.
Not quite. VC plans on 9 out of 10 deals not working out. So that remaining 1 in 10 has to make enough to pay for the rest. That means that a 10-fold return just breaks even. But it gets worse. For an investment with a 10 year horizon they need to beat alternate investments. If you peg those at 10%/year (compounding annually), then you now need a 25-fold potential return on investment for the fund to have a chance to meet its goals.
Is the reasoning wrong, or is there some troll going on that I don't know about? It seems quite realistic to me.