What is a venture capital firm supposed to do when it can’t generate enticing enough returns for its limited partners—the pension funds, family offices and sovereign wealth funds that supply cash to VCs to invest in startups?

Does it hand back $275 million to its LPs, as the Bay Area’s CRV did late last year, citing fewer investment opportunities for mature startups? Does it perhaps follow the examples of Seqouia and Y Combinator by laying off staff in the downside of the industry-wide boom in 2021? READ MORE