[dragonwriter]

Scenario 3: Fund Managers are very interested in making money, and also realize that (1) advancing the culture of and maintaining their position in elite backscratching networks has payoffs for that outside of portfolio returns, and.(2) the same networking and nepotism factors are at play for many of the other business deals besides venture capital that a new business will need, so just from an investment perspective weighing those factors heavily makes sense.

[bko]

> advancing the culture of and maintaining their position in elite backscratching networks has payoffs for that outside of portfolio returns

But they have investors. Their investors care about portfolio returns, not the elite networks of the VC administrators.

> the same networking and nepotism factors are at play for many of the other business deals besides venture capital that a new business will need,

So basically running a business is easy and pretty much anyone can do it, you just need connections rather than competence.

None of this makes any sense.

[catgary]

> But they have investors. Their investors care about portfolio returns, not the elite networks of the VC administrators.

I mean, those investors are often part of those networks.

[sroussey]

Those networks are cut-throat while being clubby which is actually super negative on bad performance.