Just realized the huge management fees charged by VC firms are an instance of the Baumol Effect. Good VCs could start their own startups if they wanted to, thus have to be paid enough not to.
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Possibly. But it could also be that the optimal age for VCs is older.
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In other words the older folks who turn VCs are less likely to start new companies in any case. Hence they should be paid less by your argument. Lousy logic.
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