So how important is the presence of VC's in the area? From what I understand, VC's know that if they invest in 10 startups, only 1 of them would result in a hig

So how important is the presence of VC's in the area? From what I understand, VC's know that if they invest in 10 startups, only 1 of them would result in a high return but that would make up for the other nine ones. This way, 10 start ups got their shot. Now if all the potential investors in the area are highly risk-averse, and insist that they would only invest if you are already making a huge profit, then that kinda adversely affects that startup scene, no?