The largest US pension fund, California Public Employees' Retirement System, has only had a return of 0.49% on its VC investments, per BI.

Because venture is such a risky asset class, institutional investors generally expect 25% to 30% IRR for early-stage funds, Leonard Sherman, a professor at Columbia Business School, said.

Venture has been, by far, the worst asset class for CalPERS, returning an anemic 0.49% from 2000 to 2020, according to a 2020 presentation given by its investment committee.

CalPERS recorded its first loss last year since the Great Recession, announcing a -6.1% net return on investments.

"Despite the market conditions and their impact on our returns, we're focused on long-term performance and our members can be confident that their retirement is safe and secure," CalPERS CEO Marcie Frost said last year in a statement.