Venture capital investors are big fans of the word “strategy,” but they hardly give it much thought in their own business. Historically, venture capital firms competed by outdoing their peers in the same activities; they tried to answer emails faster, be nicer to founders, have a broader network, offer better terms, recruit smarter and better-known partners. Firms differentiated themselves by focusing on different funding stages, sectors, or geographies. But ultimately, their business was quite similar to that of their competitors. Firms that did well had more money to spend on doing the same type of activities even better.