There's this confusion that VCs exist primarily to help innovative startups get off the ground. This just isn't true; they really exist to generate returns for their investors. The complaint that entrepreneurs are so underserved by VCs misses the point: a VC only needs to make a couple investments a year to meet their goals for their LPs. VCs aren't, and have never been, the gatekeepers to success -- and that's not their intention.

Yes, there's a long tail of crappy VCs that don't make money and are generally wastes of space -- but that's more an argument for less venture capital in the valley, not more, at any price point, whether it's $200k or $2 million.