But for who? You keep saying "from their clients", but I don't think you understand how the VC model works or care to explain what you mean by "protect".
Here's an example:
The California State Teacher's Retirement System, or CalSTRS (called an LP) committed money into Shashta Ventures. Shasta ventures then invested in several Series A and Series B startups (presumably "disruptive innovation"). Sashta then profits from selling those companies and takes a part of that profit for themselves and gives another part to CalSTRS.
So. No, they're not "protecting it from their clients". VCs clients are their LPs and their goal is purely to profit from M&A/IPO activity and return that for themselves and their LPs.
There isn't any dirty little secret about the industry - its that simple.
Providing no evidence nor having experience in this area for why this is the case other than repeating the same thing over and over again isn't a very compelling argument.
For the record, I'm an angel investor and work with VCs. What you're saying makes no sense to me.
But for who? You keep saying "from their clients", but I don't think you understand how the VC model works or care to explain what you mean by "protect".
Here's an example:
The California State Teacher's Retirement System, or CalSTRS (called an LP) committed money into Shashta Ventures. Shasta ventures then invested in several Series A and Series B startups (presumably "disruptive innovation"). Sashta then profits from selling those companies and takes a part of that profit for themselves and gives another part to CalSTRS.
So. No, they're not "protecting it from their clients". VCs clients are their LPs and their goal is purely to profit from M&A/IPO activity and return that for themselves and their LPs.
There isn't any dirty little secret about the industry - its that simple.