This is the solution: a program where talented young people are mentored by the VC firm, under the condition that they work for startups (as founders or early employees) for the next 7 years. The VC does not necessarily fund their startups, but uses its contacts to ensure that the founder remains employed and able to survive. At the end of the 7th year, employee has the option of joining the VC firm as entrepreneur-in-residence.

People would be less afraid of the career risk involved in starting companies this way.