The most common mistake of many VCs (still true today) is they deploy micro-private equity (post-chasm) subprime risk to chase the returns of prime. An unlikely outcome. The second one is they generally have no clue about the macro-economics to yield winner-takes-all companies. They push technology for technology sake as if every technology is golden just because it contains the magic potion of code.
They are generally pretty good at setting up syndicates to support a rat-race for money selling snake-oil to the next greater-fool in a world of make-believe. It is after-all a grand scheme of collusion where the companies heavily supported by opaque advertising schemes portrayed as the next best thing since sliced bread yield little evolutionary value society will continue to benefit from.
Many of these so-called “unicorns” are non-renewable, and thus their make-believe is leading to a modern-day bank robbery of society, especially when the public as the last and least informed greater-fool get to partake in the hysteria through crowdfunding or post-IPO.
The sub-priming of venture capital continues, as I stated on my blog more than five years ago (Venture Capital’s problems will continue). But the reason why is lodged not in venture capital, but at a much higher normalization of our systems in how we assign money to evolutionary merit.