Linus, this is always a good Fund economics chapter and very useful for all entrepreneurs to be familiar with. If your success does not move the needle, it is not good use of the fund time and capital in the first place. However, the assessment of how big the portfolio company needs to become has one further step that you have not touched upon, where absolute values matter. A VC fund normally holds a minority stake in the company, let’s say, a 20% at the time of the exit. therefore in order for the Fund in aggregate to generate the 3x return (that yiled the 20% IRR) the portfolio has to create a “market capitalization” of approx 15x the size of the fund. A $100m fund will need to have invested in a set of companies that, in aggregate, are worth $1.5bn to give out a 3x return. (i am intentionally ignoring fund fees and other details in this). Some companies just do not have that potential. Some operate in sectors that have not (yet) generated those exists. This may explain why sometimes VCs compete agressively to invest in one particular deal/founder/manager if they believe “that’s the one that can make the fund”. Inshallah.