On this, I used to work in investment management. Good distribution is several times more important than generating returns. One of the most prominent managers

On this, I used to work in investment management. Good distribution is several times more important than generating returns. One of the most prominent managers local to me (worth $150-200m, probably one of the wealthiest people in my country) only has one senior manager, apart from that...just grads. The product is terrible but is designed for a certain market that is growing rapidly and is naturally doing very very well. This is true of all of the largest fund managers local to me: always distribution first, thinking about who is going to buy, and what they care about (i.e. US pension fund, superannuation, etc.). Even worse, I have come across more than one manager who was clearly very +EV but either couldn't raise money or went out of business because they weren't selling the right product at the right time. Most good managers do stay in business but not all. And if you don't have good distribution, you won't survive no matter what returns you have. Why? My current theory is that people have rigid ideas about how to make money. Profit doesn't matter: it is about validating an idea or opinion of themselves. I suspect that the VC world is no different. I know nothing about a16z apart from their "reputation": very influential, whizzy VC firm, and very safe intellectually. They are the archetype VC firm, this is what VC investing is, you can lose money but you won't lose face.