[palata]

> They aren't faking it, the potential of a company and market share is there in the ingredients but they lack the runway to quickly take off.

How do you explain that the vast majority of startups fail, then?

IMO the best a VC can do is check that the startup they invest in is not an obvious scam. But then it's impossible to predict which technologies will work and which will not. So they just diversify, counting on the fact that a few of those startups will bring significant money at some point.

Sure, they like to share their "vision" and "predictions", just like traders probably like to share their opinion on the stocks they buy. But at the end of the day, they don't know, they just diversify their investment.