By its very nature, venture capital is a risky investment, and so VC funds diversify their investments broadly across a portfolio of companies. Most VC funds will invest in 10-30 companies and expect that:
A small percent of the portfolio (around 10% of the portfolio) are going to yield high returns often called "home runs".Some will break even and some will turn into losses.
VC funds assure diversification in investments over a number of companies; hence the risk of loss of total capital is reduced. Instead, the chances for earnings in large amounts from high-growth companies are increased.

By its very nature, venture capital is a risky investment, and so VC funds diversify their investments broadly across a portfolio of companies. Most VC funds will invest in 10-30 companies and expect that:
A small percent of the portfolio (around 10% of the portfolio) are going to yield high returns often called "home runs".Some will break even and some will turn into losses.
VC funds assure diversification in investments over a number of companies; hence the risk of loss of total capital is reduced. Instead, the chances for earnings in large amounts from high-growth companies are increased.