I don't want someone to win American Idol, I want American Idol to pick the best singer, whether or not said singer is a judge.
As an investor in a venture capital firm, though, you would expect the firm to award funding to the best, not to the insiders.
As a politician interested in fostering a successful startup environment in your district, you would expect the firm to award funding to the best, not to the insiders.
As a fledgling startup yourself, you would expect the firm to award funding to the best, not to the insiders.
As Simon Cowell, you would want to pick yourself. Therein lies the issue. Only Simon Cowell wants Simon Cowell to win over other, more qualified startups.
But the thing is, being an insider is usually a good indication of future success.
If you already have those connections, that means you have a huge leg up on the competition. You can raise more money at better valuations (meaning you can make longer term bets, build a better team), you have access to better talent, and you have access via your network to other executives that can make deals happen.
We are upset because it isn't fair, but that isn't really the point. They want to make a ton of money. Yes, they also want to change the world, but tenacity and people skills (required in the VC word) are huge indicators of executing on whatever vision you have.
As an investor in a venture capital firm, though, you would expect the firm to award funding to the best, not to the insiders. As a politician interested in fostering a successful startup environment in your district, you would expect the firm to award funding to the best, not to the insiders. As a fledgling startup yourself, you would expect the firm to award funding to the best, not to the insiders. As Simon Cowell, you would want to pick yourself. Therein lies the issue. Only Simon Cowell wants Simon Cowell to win over other, more qualified startups.