I understand the cynical take, but having worked with a lot of investors, I don't think it's the dominant reason. If at all possible, investors would rather own

I understand the cynical take, but having worked with a lot of investors, I don't think it's the dominant reason. If at all possible, investors would rather own a smaller piece of something huge than an ever increasing share of something small. This is actually something you can use when negotiating if someone tells you "I need 20%." Really, they need a big return on their invested dollars. The exact % is just a rule of thumb based on the overall returns they expect from their investments in the context of the entire portfolio.