My comment on the blog repeated here:<p>"You correctly assume that the distribution follows a power-law, but you apply an arbitrary constraint on the maximum ($5bn). You constrained the maximum and then concluded that the distribution is not scalable!<p>Even if historically VCs haven't had a larger than $5bn exit, there is no reason it won't happen in the future. Unless VCs have some sort of self-imposed upper-bound on exits, this asset class is perfectly scalable as long as VCs have the intestinal fortitude to hang on to some hits for longer than they have in the past. (Also they need to invest in earlier stage startups and diversify more than they think they need to, to benefit even more from scalability). "