VCs like to take risk, but risk at the investment level of potentially millions is a lot harder to leverage or hedge when you only have 2 options. Invest or don

VCs like to take risk, but risk at the investment level of potentially millions is a lot harder to leverage or hedge when you only have 2 options. Invest or don't invest. Big players in the stock market, hedge funds, banks etc have the ability to hedge and leverage risk with different processes such as short selling and many other tactics. A VC will think like an investment bank but have limited potential to save themselves in a moment of bad judegement. School yard mentality too, once its clear everyone is getting involved, due diligence shows that there is some sort of hype building then they follow - it takes a lot to be the first especially in a playground of Silicon Valley and startups. (I have never dealt with any form of VC therefore this is my judgement and idea going from the mass amount of reading I've done)