The chapter explores the unique treatment of decision-makers like general partners in funds and highlights various case studies like an Italian fund with a high performance fee and a dark scenario from the long-term capital management episode. It discusses the decisions made by investors and companies regarding raising external capital, showcasing examples from companies like Renaissance and Microsoft. Additionally, the chapter delves into the dynamics of venture capital investments, comparing strategies of different venture capital firms and discussing the challenges and potentials of scalability in the industry.

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