The last few decades of US economic policy has been based on the idea that private investment is more effective than taxing and redistributing money. But as it turns out, it's not just the government that's dumb -- all large investors behave in this dumb, herd-like way. And at least governments are more comfortable spending money without expecting a return.
I really think the power of capitalism lies not in some magical ability of markets to make good decisions but in the freedom it affords to route around bad decisions and the bureaucracies and corporate institutions that make them.
In a vertically integrated Soviet-style economy a single bad bureaucracy results in the total failure of that industry. It's not really possible to sidestep it; there is no "permission free innovation." In a free market those big dumb slugs still exist but it's at least possible for some people to go around them.
If he wants to do some really interesting somewhat outside-the-box work, he often has to find some way to make it look incredibly dull and inside-the-box and incremental in order to convince some funding bureaucrat to fund it.
Most money is dumb and flows in a herd-like manner into things that look superficially like things that have been successful in the past. This includes stock market money, government money, and yes even VC money. You often have to trick the world into funding genuinely interesting or productive work. Without a bit of marketing money will just chase the latest bubble or fad. It's like you have to save money from itself. If truly creative and productive people don't lay on the marketing, money will instead flow to charlatans who do... see also WeWork, Juicero, etc.