The thing is I don’t think investors got deluded, I think investors new exactly what they’re doing. They were hoping some greater fool would take the investment off their hands
I remember VCs investing in Cash4Gold when that was being hyped, presumably because it was growing stupid fast. [1] I think that qualifies as a we-are-a-tech-cuz-website company. What VCs mostly look for is growth. Some silo themselves into niches (e.g. enterprise software), but I reckon that any company with high growth potential would be fair game.