Actually, SV has been such a success because you can raise $10M, and sometimes more, basically over a lunch. No one else has that. So yes, money goes to waste,

Actually, SV has been such a success because you can raise $10M, and sometimes more, basically over a lunch. No one else has that. So yes, money goes to waste, this isn't always considered a "bad" thing given how many startups go under even with well intended founders. SV has made a repeated bet that getting rid of almost all normal "red tape" (think audited financials, regulatory disclosures etc etc) is a net positive. Startup after startup has found this a successful place to start massive globe spanning companies (and smaller ones).