Yes, there is a herd-mentality where VC's will fund start-ups to enter a newly found market, but I believe what ahk is referring to, is that a VC would not create a company to compete with a company they've been pitched.
There are many reasons that most responsible VC's would not do this.
#1 being that if they are pitched effectively, they have somebody right there with the knowledge, passion and initiative to get going on the company.
Additionally, it could be detrimental to the VC's reputation to be seen as taking ideas from pitches.
At the same time, I've heard from a few VC's that they are constantly hearing VERY similar pitches for the same ideas again and again. The chance that you are bringing something completely unique is small. This is often why VC's will talk about investing in the people, rather than the idea. Along with the fact that start-ups will often completely change their product before it sees the light of day.
There are many reasons that most responsible VC's would not do this. #1 being that if they are pitched effectively, they have somebody right there with the knowledge, passion and initiative to get going on the company. Additionally, it could be detrimental to the VC's reputation to be seen as taking ideas from pitches.
At the same time, I've heard from a few VC's that they are constantly hearing VERY similar pitches for the same ideas again and again. The chance that you are bringing something completely unique is small. This is often why VC's will talk about investing in the people, rather than the idea. Along with the fact that start-ups will often completely change their product before it sees the light of day.