How do VCs make money?

Excuse me, but could you elaborate on how venture capitalists, or VCs for short, actually generate revenue? I'm curious about the mechanics behind their profit-making process. Do they solely rely on the successful exit of their portfolio companies, or are there other avenues for them to generate returns on their investments? Furthermore, how do they determine which startups to invest in and what factors influence their decision-making process? I'm keen to understand the intricacies of this financial strategy.