The many failures of the last decade are inherent in the VC model. As VC firms look for "unicorns" instead of solid profitable opportunities, failure becomes inevitable. There are, in reality, very few "unicorn" opportunities but there are endless opportunities for hype-fueled fiscal black holes. The trouble with non-companies like Uber and WeWork raising billions on hype alone is that this becomes the default model. It does seem astonishing that the boys & girls of the VC world don't run basic Excel models, but as they all came fresh from MBA school and have zero real-world experience, it's perhaps inevitable that they are all follow-the-herd-don't-ask-questions types. It may be that no real reform of the broken VC model is possible, in which case squandering billions of dollars of other people's cash in the hope of getting lucky will remain the dominant model. Which in turn means many more spectacular failures to come.

Anyone who enjoys my articles here on Medium may be interested in my books Why Democracy Failed and The Praying Ape, both available from Amazon.