I'm not the GP but here's an example of larger trend that they might point to in support of their argument: Excerpted from Matt Levine's Money Stuff newsletter

I'm not the GP but here's an example of larger trend that they might point to in support of their argument: Excerpted from Matt Levine's Money Stuff newsletter: https://www.bloomberg.com/view/articles/2017-04-04/hacienda-hedges-and-unicorn-votes https://www.bloomberg.com/view/articles/2017-04-04/hacienda-... > One simple story to tell here is that globalization and technology have shifted the bargaining power between entrepreneurs and providers of capital. These days, if you want to start a social-media company, you don't need to raise a lot of money from investors to build a factory. You just need a dorm room, and your parents are probably paying for that. And if your social media company is a success, it can go global instantly with near-zero marginal costs. (Yes, I know, this does not exactly describe Snapchat, which is focused on developed economies and which has weirdly enormous costs, but still.) The path to being a gigantic profitable company is paved relatively more with ideas, and less with capital: Vivek Wadhwa, a distinguished fellow at Carnegie Mellon University’s College of Engineering, says the “winner-take-all” culture in which a few tech companies emerge as hugely profitable from among a far-larger number that fail encourages investors to give tech executives more leeway. Meanwhile the same forces of globalization and technology mean that there are a lot more people with capital. U.S. tech companies can raise money from China, or the Middle East, rather than limiting themselves to New York and San Francisco. Globalization opens up new markets, which makes good business ideas more valuable, and new sources of capital, which makes those ideas easier to fund. So winning entrepreneurs are more valuable, while capital is less valuable and less scarce. Of course the bargaining dynamic between the people with ideas and the people with capital has shifted. You'd expect to see some of that playing out in price -- investors paying billions of dollars for unprofitable social-media companies -- but at some level, if you are a young billionaire entrepreneur, you don't really need any more money. You might as well bargain for more power, or more freedom.