This article touches on, but doesn't explore very much the main problem that there's only a limited number of companies that are actually worth the investment.

This article touches on, but doesn't explore very much the main problem that there's only a limited number of companies that are actually worth the investment. It's not necessarily a given that if there is more money in VC more great companies will succeed. There's a limited number of companies that will be Great, more money doesn't increase that supply. Instead, more money chasing deals means companies with somewhat suspect business models are allowed to go on longer than they should, wasting of course cash, but more importantly the time of those working tirelessly at those companies. It's really unclear that the answer to "public markets are hard to predict and have limited upside" is "let's invest in a more risky, more opaque asset class".