A research paper in the journal Technovation makes a point that I’ve been making fairly regularly on this site:
Venture capital has changed under the influence of a new generation of industry participants. Competition for ever increasing pools of capital, combined with an increasingly homogenized experiential background for venture capitalists world-wide, has resulted in increased risk aversion and a preference for later stage investments than were the standard when the industry first achieved prominence.
Put plainly, the institutionalization of venture capital has had some unexpected consequences, not least of which is a race downstream away from real early-stage investing. It is partly a function of investing larger pools of capital, but it is also a function of venture capital increasingly being done by a cadre of high-gloss MBAs who are made nervous by your average unvarnished entrepreneur.