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There are huge gains to be had in herd-ing. For instance, if everyone herds towards Uber instead of Lyft, you effectively pick Uber as the winner by merely herding, instead of merit or market economics

And in that case, the worst possible outcome is to have many competing funded companies in the same space. Merit doesn’t enter into it much.

VCs are looking for breakout returns for investors. A syndicate of top VCs can be a kingmaker event that also discourages other investors from backing would-be startups.

Now they have an alibi for their herd mentality