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Investing in a Venture Capital Firm
When you say multiple of capital, you're talking about the capital in the entirety of that fund and not just in that one investment. You might be doing 20 times the size of that one bet but would still be doing two times the value of your fund if you've got 10 different bets $1 million each. A $20 million return on one means that you've doubled the size of the entire fund with that one bet. So it's carrying carrying the weight of the entire funds - so thus the investors are happy with the investment and with the fund itself. The case study is Kline Perkins which was set up in 1972 by a engineer called Tom Perkins his partner was Eugene Kleiner.