[miohtama]

> adds up to a market for lemons

I have witnessed this first hand in Finland where government grants can generate a lot of inflow for early startups. Because bureocrats cannot judge which companies should stay alive or not, everyone gets money resulting to zombie startups that have not managed to scale even after 10 years.

[hkt]

Isn't the whole point of venture capital that VCs also make poor judges of which companies will be successful? Remember the fact that most VC companies fail, and the unicorns pay for them. How is that different?

[miohtama]

VCs stop wasting money when the company is beyond salvation.