Investors have convinced most founders that want to start a startup that if they take on venture capital, they need to be a "unicorn" to make the math work. $990M is no good. $1B or failure. This is clearly wrong, and has done more damage than good by a factor of 1,000+

Before I go "VC incentives 202" on you, let's do the 101 first. VCs need a massive return on their capital for LPs to continue investing. Lets say a VC invests in 10 high risk co's. 7 die, 2 break even, 1 exits for $1B. VCs take the returns from the big one to cover all losses.

A VC takes their winners, splits the carry with their LPs (20/80), and get rich. LPs dont cares about the 9 companies that died, how it affects the founders, employees, families. They just die, and everyone forgets about that venture. because in the end, the VC did their job.