Is it really so or we are just led to believe into such stories? It is presupposed that professional investors should thoroughly investigate a business and evaluate its commercial potential before deciding on making an investment in it. In any case, I don't think they would be acting like reckless gamblers. We can only judge in retrospect whether something is going to end up as worthless junk, after all.
i'm talking specifically about tech vc investment. what differentiates that is that very few of their valuations seem to have any relation to actual intrinsic value like revenues and profit. it's pure speculation so no one knows what'll catch and what won't.
they seem to throw as much shit at the wall as possible and hope something sticks. a friend of mine put a bunch of his own money into a bitcoin payment processor. crazily enough it all went up in smoke. I could've told him that for half the money he threw away. 7
i'll guess over or near a billion dollars has been thrown at bitcoin/blockchain companies now. i'll also guess that not one cent of actual profit or return has been generated by any of that money yet. coinbase and circle must be burning millions per year and they're the classiest operations.
real vc investors have decade or more time frames but that's a lot of time for things to fade away or go wrong.