I don&#x27;t understand. The &quot;model&quot; isn&#x27;t the creation of venture capitalists; it&#x27;s just mathematical reality. Whether you&#x27;re shooting for 2x or 10x returns, the odds-on bet is that your company will fail. That&#x27;s what new companies do. It&#x27;s true of tech companies, barber shops, and restaurants. In a cohort of failing companies, the returns from successes must be higher to subsidize the losers.