According to SaaStr, venture capitalists benefit from diversification—they can back multiple companies and only need a handful to succeed. But here's the counterintuitive flip side: that diversification creates its own pressure. VCs need a constant stream of wins to satisfy their investors and justify their returns. It's less a lucky lottery and more like running a movie studio. You can absorb failures across a portfolio, but you need continuous hits to keep the model working. So while founders might envy VC optionality, the reality for venture firms is relentless: year after year, hunting for the next big winner.

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