[nabla9]

One thing not mentioned in the article is the flood of dumb money from the Gulf states. Saudi investments, Abu Dhabi Investment Authority, etc. have been buying stuff from VC investors. Not always directly but trough some funds or companies like SoftBank.

That money is so dumb.

[umeshunni]

but LPs being dumb is acceptable. The job of the VC firm is to funnel that dumb money into smarter investments.

[nabla9]

Number of smarter investments don't increase when you add more money.

More money + equal amount of smart investments -> ROI decline.