I'd suspect it helps do 2 things

- marginal VCs die sooner. This is already happening but more competition for deals hurts VCs who don't bring a lot to the table. This either brings in new smarter blood or right sizes the industry.

- can allow for a set of investors whose criteria for success is more in line with reality. A $100M exit doesn't get most VCs excited but angels and syndicates of angels prob love those. And 60% of tech M&A exits last year were less than $100M.(1)

(1) http://www.cbinsights.com/blog/acquisitions/tech-mergers-acq...