There is a contagion component here. A lot of mid size and larger VC funds raised funds specifically to invest in smaller VC funds. While poor performance of th

There is a contagion component here. A lot of mid size and larger VC funds raised funds specifically to invest in smaller VC funds. While poor performance of these smaller funds won't affect the return profile of their primary funds, it will drag on overall performance from the LPs point of view. A lot of "fine" mid size and large VCs are going to have much less appealing overall profiles.