This kind of criticism is unfortunately not new. VCs are routinely criticized for funding enterprises on little more than hunches, and history is replete with e

This kind of criticism is unfortunately not new. VCs are routinely criticized for funding enterprises on little more than hunches, and history is replete with examples of investments that made no sense, from the infamous Tulip Mania onward. It really speaks to a few things: 1) how irrational apparently intelligent people can be, 2) the importance of salemanship, and 3) that the value of capital to those who have a lot of it is much less than its value to those who have little, and so they are more willing to take bets such as those described.