I enjoyed the essay. VC's likely believe lowering the dilligence and involvement level lowers the likelihood of success. If VC's believe, rightly or wrongly,

I enjoyed the essay. VC's likely believe lowering the dilligence and involvement level lowers the likelihood of success. If VC's believe, rightly or wrongly, the success rate drops from 10% to 5%, then by lowering selection criteria and involvement, they've lowered the rate of return by diversifying into a pool of lower quality. The key is whether those things really matter. In justifying their paychecks, however, they are vital.