“Let’s examine another scenario where Dough Ventures invests in 20 companies: 10 exit for $100M, 10 exit for $50M. This would seem like a rousing success since all 20 companies exited for decent amounts.”

On average the fund invested $5M for 10% stake — that means the valuation of the entire company was $50M at the time of investment — if it extited at $50M that does not look like any success. And those that exited at $100M was only doubling. Obviously this is not a good return — but it started with already high valuation.