A somewhat tangential meme is making the rounds of the VC bloggers at the moment which might be applicable to the point of this article: the current VC model is mostly broken because VC firms make too much money on the carry, so they raise huge funds (using past history during the 'fat' years to justify them to LPs) and this increases the pressure to deliver invest in larger chunks and aim for unrealistic returns on these large investments.

If a firm's GPs expect a seven-figure base of compensation they are going to want to raise 200-500MM depending on the size of the firm, which is difficult to effectively distribute in chunks of less than 10MM.