While everything in the article is true, it's also often irrelevant. VCs collectively are like small children attempting to play soccer: everyone wants to get near the ball. When a new trend bursts into life, VCs suffer from FOMO in a big way and rush into stupid deals because every other VC they know is rushing into stupid deals. This leads to over-valuation and over-saturation. There may well have been a viable market opportunity for one or two companies doing X, but when 25 companies are all funded to do X it's clear a great many tears will be shed before bedtime. VCs individually can be reasonably clever; collectively they are often astonishingly stupid.