"Aren't you worried that the worst companies will be the ones who take a given deal." That is an assumption that we know who the best and worst companies are from the start. And based on VC return data, we're pretty bad at evaluating that actually. This is why adverse selection doesn't exist in VC when the job is about betting on people. If we don't know what someone would do with $$$, we will never know if they are a good or bad bet. Just bc someone doesn't have a target background does not mean they are a bad deal. Could be the opposite.