>VCs aren't bad for this behavior, it's completely rational, but if the big winners look like red flag city initially, a higher investment rate of smaller capit

>VCs aren't bad for this behavior, it's completely rational, but if the big winners look like red flag city initially, a higher investment rate of smaller capital allocations can net better outcomes. And this is one of the reasons why human organizations eventually stagnate and then decline. They get too big so that they have to manage by filtering out those unique opportunities that would have been necessary for their survival.