The answer is when they can hit a 20.71% Gross IRR and 2.16x Gross Investment Multiple. That’s according to an analysis done by Wiley Becker of Square1 Ventures, a venture capital fund-of-funds manager. Becker notes that VC FOFs have become overdiversified, which has led to poorer returns overall for the sub-asset class. [Source: Wiley Becker]