One thing they mention in the video discussion of this article ( http://www.youtube.com/watch?v=4Ue1pcNP6FQ http://www.youtube.com/watch?v=4Ue1pcNP6FQ ), which

One thing they mention in the video discussion of this article ( http://www.youtube.com/watch?v=4Ue1pcNP6FQ http://www.youtube.com/watch?v=4Ue1pcNP6FQ ), which is not in the article, is that many investors are not able to get their money into the top tier VC funds. Yet these same investors have diversification needs which compels them to slot a percentage of their capital to VC. So many investors wind up giving the money to lower tier VC funds, many of which lose money.