I understand the antagonism towards VCs, but they have financial reasons why they push for only unicorns. Best reasons I have heard so far are:
1) The only way VCs can make large amount of money for their investors is via a liquidity event. Investors would much rather prefer .25% of a 1B dollar public company than 25% 10M dollar private company, because you can liquidate the former far more easily.
2) Overhead costs are significantly less when you focus on fewer companies, which is what happens when you push all companies to be a unicorn. A VC would much rather care about 5 companies with significant promise than 500 small companies. In the latter situation, you would need way more employees to make sure your investments are safe.
3) Funding a few unicorns is better for marketing purposes. VCs need to raise money from institutional investors, hence need to "wow" them.
1) The only way VCs can make large amount of money for their investors is via a liquidity event. Investors would much rather prefer .25% of a 1B dollar public company than 25% 10M dollar private company, because you can liquidate the former far more easily.
2) Overhead costs are significantly less when you focus on fewer companies, which is what happens when you push all companies to be a unicorn. A VC would much rather care about 5 companies with significant promise than 500 small companies. In the latter situation, you would need way more employees to make sure your investments are safe.
3) Funding a few unicorns is better for marketing purposes. VCs need to raise money from institutional investors, hence need to "wow" them.