Institutional investors give VC's money part of which their investees then put into real estate leases anyway. Cutting out the hassle for the startup that should be focusing on product seems efficient in more than one way.
And the institutional investors likely also have a sizeable commercial real estate portfolio, so it's just a bunch of money going around in circles. I think the general term for this is 'the economy'. We probably group similar assets in to 'industries' because certain schools of thought believe this generates more economic activity, also for convenient accounting.
> We probably group similar assets in to 'industries' because certain schools of thought believe this generates more economic activity, also for convenient accounting.
Accounting is much easier than it used to be, so we can afford to be a bit more inconvenient. Maybe it's time for a vertically integrated startup service provider. Don't VCs already do things like arrange legal services for their portfolio companies?
