VCs are a perfect implementation of "the market will decide" but I think you misunderstand in this case what the market is. It's not some idealized invisible h

VCs are a perfect implementation of "the market will decide" but I think you misunderstand in this case what the market is. It's not some idealized invisible hand, the market is the people who show up and participate, exactly like your local farmers market for vegetables. And the VCs are the ones who show up and participate, so they are in large part the market for early stage startups. Anyone else who wishes is naturally allowed into this market as well. Markets are no panacea, they've only ever worked as well as their participants, (being composed of nothing else) and they tend to do better when they're broader and deeper, which VCs most certainly are not, in comparison to other markets such as for stocks.