Nobody is going to want to invest with them if they're known to round everyone up and ... walk.
Presumably the value of being able to call up other investors and get their money, guidance, thoughts in the game too is highly valuable.
In business very often the network type stuff is the most valuable. Give me $1B and someone with a good network $1B and we go out investing in startups or such ... dude with the network probabbly does pretty well compared to me.
1b wins. You have no capital.
I think it gets interesting around: 1 billion vs 500 million. Still put m money on a 1 billion and buying access to a network for less than 100 million.
I do wonder what the professional relationships type situation is with the network.
I suspect someone at Sequoia can call some buddy at another place if he has a question and get some good information "No man that dude is bonkers / reckless." that might save them a lot of time. Same goes the other way.
Not sure how much good info I get calling up Sequoia "Hey man I got a $1b ... what do you know about...."
If you have a good network you can raise capital. It all you have is capital you can't buy a network.
Note: I run a 50M AUM VC.