Isn't this an "all sides" problem? This article tends to use the term "toxic VC" but forgets one thing - VCs are generalist and not specialist every startup's problem and market. They rely a lot on data provided by the startups.<p>Many startups, if not all, oversell themselves. Maybe it is for the fear of not getting a funding. What follows is a fat check and pressure to grow.<p>There is one thing I wish people learn from this article but in a different way.<p>> After this fundraise, everyone at Fuego agrees to hit the gas, hard. Burn rates jump from $200,000 a month to more than $1 million per month. Experiments that previously were returning $1.50 over time for every dollar invested start to return $1 as money is pumped into scale, but everyone agrees that’s okay. It just means that the customer pays back the cost of acquisition more slowly.<p>The difference being...Not everything scales. Sometimes you feel you have a "huge" market but the novelty of things will never scale. It is not a VC problem rather market research problem.