His criticism isn't that 2nd tier VCs have lower returns. It seems to me your point would make sense if his criticism was of 2nd tier VCs for lower returns. Si

His criticism isn't that 2nd tier VCs have lower returns. It seems to me your point would make sense if his criticism was of 2nd tier VCs for lower returns. Since that isn't a fair comparison if they don't get a shot at the best deals. I think his criticism is pretty obviously that VC often don't add value (no matter what tier they are at). The things mentioned in the article seem be criticisms of business as usually (not of some performers getting lower rates of return). It strikes me he realizes some VCs provide great help. And sure the cash is often helpful in growing though the growing quickly may well not really be good for the business when it distorts the companies focus to making huge financial bets to get huge returns. @dhh provides lots of good criticism of VC funding, in my opinion. Watching his activity or going through his history would provide more details on the problems created by accepting VC funding. Of course, lots of people with lots of money don't see things the same way he does.