Also, I bet VCs are far _more_ aware than the average Joe of the wide body of worthwhile but uninvestable ideas. After all, they are responsible for saying "no" to them and gently redirecting them to government/patronage/charity while asking to keep in touch in case the field becomes investable (because that's the story of how their boss got rich).

"Value capture problems don't exist because capitalism is perfect" is the kind of misconception that can only survive far away from the actual process of finding investments and making returns.