They're VCs. They have to bet on moonshots, because they bet on a lot of companies, most of which fail. If they don't bet on crazy ideas, it means the few that

They're VCs. They have to bet on moonshots, because they bet on a lot of companies, most of which fail. If they don't bet on crazy ideas, it means the few that succeed, will only succeed like a "regular" company would succeed - with some nice just above positive cashflow, growing in the next 20 years to somewhat sustainable business - nice and slow. This will not fuel financing other 100s of companies that have failed. What they need in every company they fund is at least a potential of astronomical exponential fast growth, if it succeeds. That's why many of these can be called "moonshots". If the upside in a company is only to be "mildly successful" - they are not for VCs. The upside has to be explosive (even if there is a low chance of it).