Very interesting take on the various sources of persistent returns. A slight modification might be: vc is all about deal flow, but then works on deal selection, co. operation, and exit. Early funds got great exits (because returns are always highest before more capital comes to the party), and thus led to offices on magical sand hill road and more deal flow. But over time different players can generate deal flow by becoming the best at one of the other levers (eg a16z focused on company operation through platform benefits, and thus attracted more deal flow).

We just did a case about how the whaling industry set the stage for the modern vc industry, and a lot of what you wrote about would be applicable there too. The best agents (vc forms) got the best captains (entrepreneurs) and the best information about where the whales were (sequoia) but they also used the boats they had out there (platform support eg a16z) to increase communication and help each other to maximize their return of oil ($$$$).

I think you’d also appreciate Clay Christenson’s theories in The Innovator’s Solution about disruption. I wonder how they apply to vc? Also would love to chat more about this for a project I’m doing.