"This will all stop when the average VC can’t get any of his/her companies to scale because there is just too much VC sponsored free stuff out there." Markets

"This will all stop when the average VC can’t get any of his/her companies to scale because there is just too much VC sponsored free stuff out there." Markets don't disappear because they're too crowded. When they're too crowded, some people are forced out and it moves down to a more reasonable equilibrium. That's like saying that a theme park will fail because it gets too crowded -- when something is too crowded to be worthwhile, people stop going and it then becomes not too crowded anymore.