Technology is very winner take all. Like peter theil says, last mover advantage is high. Google has largely ended the race for the market to develop search, and

Technology is very winner take all. Like peter theil says, last mover advantage is high. Google has largely ended the race for the market to develop search, and microsoft was the last enterprise operating system. So the top VCs typically have access to the top entrepreneurs. However, this is a huge industry and the best VCs and the best entrepreneurs are in minority. So the rest of the companies, most of which are not great or innovative, get funded by finance VCs who want to maximize return, but are not as connected, knowledgeable or high-profile as someone like DFJ or Sequia. Basically the A team entrepreneurs get funded by the A team VCs and everyone lese pretty much get's beaten by them. Good VCs make money for their LPs which is why it is so hard to get into those funds.