Im not on the side of VCs, but many are victims, not guilty, of this.<p>Usually, institutional investors(e.g. Fidelity) give money to VC funds that spend most of their time finding good and reasonable investments.<p>However, Fidelity and other institutional investors have been investing in late-stage deals, &quot;cutting off&quot; many VC funds and  increasing valuation of companies.<p><a href="http:&#x2F;&#x2F;www.bain.com&#x2F;publications&#x2F;articles&#x2F;shadow-capital-steps-into-spotlight-forbes.aspx" rel="nofollow">http:&#x2F;&#x2F;www.bain.com&#x2F;publications&#x2F;articles&#x2F;shadow-capital-ste...</a>