1. Looking at a data set of 1,018 companies, Mr. Gera determined that not a single entrepreneur received venture capital funding by submitting a business plan “over the transom.” By contrast, about 5 percent of entrepreneurs who knew the venture capitalist or gained a personal introduction received funding.
2. А partner of a venture capital firm that was closing its doors donated every business plan that the firm had received from 1999 to 2002— documents covering some 1,100 companies.

Apparently, funding on introductions only is EXACTLY the reason why this venture firm failed so miserably.