The challenge of the venture capital (VC) “industry” is that its flawed arbitrage perpetuates a considerable amount of nebulous downstream innovation without tangible socio-economic value to the evolution of mankind. Innovation that is not.
Meaning, the VC “industry” perpetuates meaningless valuations sold to a long and fragmented chain of greater-fool financiers (with the public in the end) until the test of reality makes the bottom fall out of valuation’s false promises.
The exception to this spectacle of populism of “innovation” is ignored by a handful of entrepreneurs (Elon Musk etc.) who can circumvent VC’s debilitating arbitrage and initially self-fund their success into a new endeavor.
The VC “industry” on-the-whole has turned subprime, misguiding the definition and pursuit of entrepreneurialism. But that problem offers a tremendous opportunity to build a new systematic approach of venture capital in the quest of prime.