Why the VC model works in the Silicon Valley chaos

From NetService Ventures -

Venture backed companies live to push discontinuous change into the world. This is "10X" stuff, and is how their backers make a living. Large firms face serious threats from discontinuous change. It is hard to see coming.

The culture of the large firm is optimized around managing continuous change, but can't manage discontinuous change. Actually, nothing can. It isn’t a rational outcome of a rational process. It comes out of the venture investing process. And that process is chaotic, not deterministic.
Outcomes are clear only after the fact. Wisdom resides in no one company, no one entrepreneur, no one venture firm. Wisdom emerges from the process. Like the strange attractor. Everyone has to ride with it. No one can manage it.

Adopting chaos feels strange to the large firm. But success requires it. Before adoption, the firm must see both threat and opportunity. We help there. With sufficient insight, the firm can then successfully interact with "Silicon Valley Wisdom." "Wisdom" is the emergent reality of all the strange change processes being run at great expense by the venture community. We help our clients interact with that reality.

It is being comfortable with strange that lets us bring new visions down to earth for our clients.