Exactly. I use to work with a company funded by Benchmark that approached it the exact same way. Their first game was just the start, and most definitely not the end. A lot of game designers fail to understand this; very few game empires are built upon a single IP. The half life of most games is pretty dismal.

Our angel investor runs a social gaming company backed by Sequoia, his company approached it in much the same manner. They have a backlog of game ideas. It's growing a big gaming businesses with multiple IPs that interests VCs, nobody wants to juggle the risk of game development on a single IP.

So yeah, the title of this post is definitely wrong. They fund game companies not game ideas.