Thats pretty amazing actually. It sounds like these lower-grade VC's could only be so cynical due to past experience, but if that is the case, who is putting them at the helm of large funds again and again?
Second-tier university endowments and pension funds, the ones trying to catch Harvard & Amherst in endowment performance. They know that if the fund performs well, they look like a genius, yet if it fails, the poor college students and retirees are left holding the bag.
The whole economy has a huge moral hazard problem. There's a reason why John Nash won a Nobel Prize.
