For those who like game theory:

By doing this they don't have to consider if startups are suitable for follow up investors and thus avoid the Keynesian beauty contest problem of not selecting the "prettiest" startup: https://en.wikipedia.org/wiki/Keynesian_beauty_contest

> "It is not a case of choosing those [faces] that, to the best of one's judgment, are really the prettiest, nor even those that average opinion genuinely thinks the prettiest. We have reached the third degree where we devote our intelligences to anticipating what average opinion expects the average opinion to be. And there are some, I believe, who practice the fourth, fifth and higher degrees."