It can, but that implies capital is the only thing required for good execution, and we know that's not true (as we saw with some of the Softbank failures). How

It can, but that implies capital is the only thing required for good execution, and we know that's not true (as we saw with some of the Softbank failures). However, if you need to make a bet, you make a bet, because for a VC fund, the small chance of an outsized return (that can return your fund) is better than a more likely chance of a 'decent' return, so you often make a bet and double down while it still seems viable. There's a reason Lyft kept getting funded even when Uber raised significantly more.