I inaverdently learned this during the dotcom bubble. Our companies were getting marked up by top tier VCs (who we were targeting so that we can establish relationships and learn from them). That led to a positive feedback loop with LPs who seemed impressed by mark ups and it took us down the path of becoming a feeder fund which works well until the crash. In the end we learned what matters is controlling our own destiny. Not needing someone else’s funding or validation and just creating good businesses, some of which turned out to be great. And avoiding the smoking craters that will result from over funding untested, undisciplined companies that think they’re hot shit because of superficial interim markers of success. It’s what I called Cargo Cult Capitalism in a blog post from decades ago.