It's a smart business model ... having all of the most innovative and disruption seekers coming to tell you their ideas - which then can help you form your understanding of where to invest, and then invest in the best options that come forward - and then more than likely help guide the companies via being on the board of directors..
Yes, it is a smart model. However consider that the process of the unravelling of idea may be much more important that the data communicated about the idea to VC. Even if founders wanted, they couldnt transmit all the data about the idea.
