VC (the VC money you and I all see on TC every day) is just one asset class of many. In most funds, it usually represents < 10% (correct me if I'm wrong) of the total fund. Since the returns of a few of the funds are consistently giving high returns this 10% might increase over time. But for now, VC is largely regarded as "high risk, high return". Generally speaking, VC and hedge funds are TERRIBLE places to put your money, but funds still put money into them because it spreads their whole portfolio risk.