(naive) Answer: VCs and investors are institutions, per se, they apply to the Clay Shirky principle. "The Shirky Principle declares that complex solutions (lik

(naive) Answer: VCs and investors are institutions, per se, they apply to the Clay Shirky principle. "The Shirky Principle declares that complex solutions (like a company, or an industry) can become so dedicated to the problem they are the solution to, that often they inadvertently perpetuate the problem." Their job is to spend (invest) money, so they must, are forced to find a way to do it. They probably are taking a company to a 'next level' with unnecessary costs like excess in staffing, office etc. There are many examples when a company hit large profits without VC money by staying lean instead following the Fat model advocated by large VCs like Andreessen & Horowitz