I don't need to cherry pick because DHH only wrote about 1 company. Also, given that fb is now worth $370B, you could have invested in all four companies and still made a lot of money, which is basically how venture works. You don't expect to make money on most deals, just the occasional amazing one.
And actually, no, DHH wrote about Groupon and Zynga as well: https://signalvnoise.com/posts/3221-and-then-the-music-stopp...
As for making money in venture, most venture funds lose money, so it clearly doesn't work that well for most investors. As an asset class, VC has failed to consistently deliver returns. Of course, the bottom 95% doesn't get plastered on magazine covers or fêted by the Twitterati, so most people don't know about them.
Of course, this is all wonderful for the consumers - we get VC-subsidized rides and meals. It's just not that great of a deal for the LPs.
Also, I agree that most venture funds, like most startups, are poor investments. If you can't tell which are which, you're going to lose money.
Given how many top venture funds simply invest partners' and partners' friends' capital at this point, most institutional LPs would be best off avoiding venture. The same goes for quant funds - Renaissance Technologies' Medallion Fund has only contained prop money for years.