This was the first thing that occurred to me. Why do they need the VC firms to change from an investment perspective? Just buy the asset class as a whole.
The lesson is VC funds are more like individual stocks than index funds from an investment perspective. Which is fine. In fact VC funds as a class are like a great class of individual stocks, from an investment perspective.
The problem isn't from an investment perspective at all. It's from the VC perspective. VC's which invest in small numbers of companies are trusting the future of their fund on the role of a dice. That is risk they might want to eliminate for their own good.
The lesson is VC funds are more like individual stocks than index funds from an investment perspective. Which is fine. In fact VC funds as a class are like a great class of individual stocks, from an investment perspective.
The problem isn't from an investment perspective at all. It's from the VC perspective. VC's which invest in small numbers of companies are trusting the future of their fund on the role of a dice. That is risk they might want to eliminate for their own good.