The economics are marginal. You need to put in a large amount of money over long time periods before you get any returns at all, so if those returns aren't grea

The economics are marginal. You need to put in a large amount of money over long time periods before you get any returns at all, so if those returns aren't great, you might end up losing money and not being able to continue. A large portfolio of mid-risk companies is not low risk, because they are correlated in various ways. For example: - macroeconomic shocks can hurt your entire portfolio. - your entire portfolio might have a selection bias High-beta funds can let go of companies that fail. But if you're counting on most companies not failing in order to make money, you'll have to step in and rescue some companies where the founders break up, or give up, or move on to better opportunities. It's very painful to recruit and install new management.