Totally get the dynamics of venture capital, but there seems to be a very big gap between funding 50 companies with 1 returning the entire fund and what OP desc

Totally get the dynamics of venture capital, but there seems to be a very big gap between funding 50 companies with 1 returning the entire fund and what OP described which is the "average" VC-backed company eventually being used to attempt to defraud unsophisticated consumer and public market investors.