I think the idea is that some of the companies in the $1 billion fund will succeed and others will fail. But, funding a single company/public works project to the tune of $1 billion would give some pause.
Look at the actual amounts raised through multiple rounds by - not just the initial seed investment the time they IPOd by any big tech name of the last decade or two: Google, Cisco, Facebook... hell look how much Groupon burned through.
The idea that you cannot raise a billion dollars if you can deliver a return on it greater than capital markets would otherwise provide is nonsense.