In practice, investors are either pretty upstanding, or kind of dirty. Upstanding investors tend to get the pick of the best because the best companies can choo

In practice, investors are either pretty upstanding, or kind of dirty. Upstanding investors tend to get the pick of the best because the best companies can choose who they want to do business with. Investors downstream tend to try to overreach on participating preferreds, pro ratas, and lower valuations. It's just how it seems to work.