Any aggregation (market, election) has the Cheap Votes Problem. People who don't really care will, if they can, sell their votes (often through passivity) and t

Any aggregation (market, election) has the Cheap Votes Problem. People who don't really care will, if they can, sell their votes (often through passivity) and this makes people who purchase and can control the cheapest of the cheap votes very powerful. That's why vote-buying is illegal; because, otherwise, it will happen all over the place. VC is a Cheap Votes Problem over what a certain set of highly intelligent people, when given capital from a certain pool, will work on. Passive investors don't care (as long as they get decent returns) and trust the VCs, who use the investors' cheap votes to pursue their career goals and those of their friends.