VCs are indeed partly about giant winners offsetting the losers. But according to Taleb, the main part is to convince other people to put money in your fund and

VCs are indeed partly about giant winners offsetting the losers. But according to Taleb, the main part is to convince other people to put money in your fund and get rich from the management fees. So from that perspective, VC is mostly about pretending your fund does well and getting people to buy in. That's probably why VCs love to buy companies in overhyped industries.