There's more money than there are good deals in Silicon Valley, ... Is that true? VCs aren't acting the way they would if they really believed it. If they did,

There's more money than there are good deals in Silicon Valley, ... Is that true? VCs aren't acting the way they would if they really believed it. If they did, they would refuse funds from potential LPs, since they really can't find professionally responsible places to invest it. But that's not what they do. Alternately, they might take the LPs' money, warn them carefully that they could be investing in some real longshots, and then be willing to invest on fairly generous terms in any number of startups that look to be competently run and pursuing plausible opportunities. But that's not what they do, either. Something doesn't add up.