New way of angel investing

A friend sent me this link about RightSide Capitals' spray and pray approach to early stage VC.
The entrepreneur who sent me this has gone through a lot over the years we have known each other, and his risk tolerence and risk appetite have changed markedly during that time. 
The spray and pray is a simple numbers game.  1 or 2 deals have to go right, in order for this to work.  In doing this via calculator and math equations, the benefit will be lowered transaction costs for doing deals.  And the hope will be to get a return that's better than risk adjusted market rate.
Will this work in traditional VC?  Not sure.
Everything will face challenges on the margin, and the thinking is some expert investor in an industry sector can pay a higher valuation, because that investor has more specific knowledge on a particular deal than RightSide will, given 100-200 portfolio companies each year.  So the best of the best deals probably won't end up in this portfolio.
Transaction costs/legal fees have to be at rock bottom, for this to make sense (like insurance). And how stale will be the portfolio be before the first returns start to come in?  It depends on the types of companies they focus on.  It might be that short-term investment horizons are encouraged with this type of investing.  Longer term investments may not be as attractive, because of future cramdowns and the inability of the fund to do the follow on rounds and protect their own interests.
I do like this approach for the PRI/MRI investments from foundations.  There, a market rate return might not be the driving factor for investment.  And it could be that some foundations would see the advantage of being able to get 80% or 90% of the invsested money back, to deploy again and recirculate, instead of continually giving grants every year.