As an entrepreneur, you should vet your investor as much as they vet you.
I've seen someone claim to be a General Partner in a VC Fund that had $50M in capital. They ran around offering to sign investment deals with companies that had terrible ideas.
Only later did it surface that the person was GP in a fund with no money. The agreements signed weren't worth the paper they were printed on.
Entrepreneurs taken by this person invested in things like legal fees to negotiate terms and lost all that cash.
Couple that with the fact that most Venture Funds don't give their LP's a return and venture funding is a terrible business to be in if you are smart.
More and more people are waking up to this.
I've seen people go from thinking they want to start a VC Fund to starting a business like a Venture Studio.
A Venture Studio typically forgoes the 2% management fee's for managing the fund and deploying capital.
However, the Venture Studio will usually own a dev shop or marketing agency that they do all the work through.
They make their money on the professional services side.
Not sure if this will be more successful but it's something I see increasingly common.