Because the "tech startups" can lift the best bits of content from the "media startups" under cover of "fair use" without having to pay any of the costs. As lo

Because the "tech startups" can lift the best bits of content from the "media startups" under cover of "fair use" without having to pay any of the costs. As long as the law fosters, encourages and protects selective content-theft, it's senseless to back a business that intends to create new content. Why back a team of creators when you can back 2 guys who can write a program that can lift the best information from their stories as well as everyone else's stories at near-zero cost? I doubt VCs dislike media startups so much as they dislike making obviously bad decisions. If we lived in a legal environment that said the guys behind Reddit had to pay royalties to the stories they linked to, things would be very, very different.