See the story of Theranos. Pretty much everyone who did basic due diligence declined to invest in Theranos; they apparently didn’t even have faked audited accounts for the purpose. But there were enough dumb rich people willing either not to ask the person who knew, or to ignore them, that Theranos had no trouble getting funding.

Now the average VC fund isn’t _as_ incompetent as the average Theranos investor, but it’s still a field where decisions by ‘visionaries’ are often valued over expertise.