Well VC are investors and money managers. If they've raised a new fund, then they need to put it to work. Capital that's just sitting there as cash on deposit isn't working, which means the VCs running it aren't doing their jobs. Q: how do VCs manage money that isn't yet invested? Put it in US Treasuries? Or the money markets with short term paper?

I've worked with a fund that didn't invest a bean, returned everything less expenses to investors.

This was at the nadir of the .com crash...