The reality is that some VCs invest in smart but risky bets and some just throw money around like it's free. Uber and Tesla are risky bets, but also have solid

The reality is that some VCs invest in smart but risky bets and some just throw money around like it's free. Uber and Tesla are risky bets, but also have solid thinking behind their business and target specific market demands. There are risks in execution and a whole host of other problems, but the idea behind it is fairly solid. What is not a smart investment is funding some company that is planning on making "the next social media analytics platform". There are what, 200+ companies all doing that? The issue is mostly one of perception: What happens when investors realize this and want their money back? The house of cards comes crashing down, and might take out some smaller, legitimately innovative places in the process. Money flows out of the industry, it is no longer seen as viable. Investors see VCs as some kind of get rich scheme, it's only a matter of time before reality intercedes. When that happens, it may even take out the biggest players. VCs are a great idea but often poorly executed, basically due to greed.