I completely agree that VC is not a magic money making bullet, but I don't think it matters for the post. Certainly there are patrons who will lose money. Havi

I completely agree that VC is not a magic money making bullet, but I don't think it matters for the post. Certainly there are patrons who will lose money. Having a portfolio full of lemons isn't going to make any financial elite any money. Most will hire accountants and financial and technological advisors. Some will provide extra services (advice, contacts, demo day audiences, etc) to bolster the prospects of their portfolios. Some will fail anyway. The ones who stick around are the ones who are good at it. The real unstated major premise of my comment is that it is essentially impossible to be a self-starter unless you are already rich, which (along with the other stated bits) implies that growth in the tech industry concentrates wealth and that there is a mobility problem that runs counter to our nice cultural myth about geniuses in garages.