Venture capital enables subsidies to speculative companies in hope of a small probability of profit, which destroys perfectly good small companies [0] , and acts as a libertarian version of socialism [1]. This exposes the fabric of a normal economy to small stressors, a couple of which may hit it big and destroy entire industries. This has its brutal repercussions [2] which are not only economical, but also social, as the sum of jobs destroyed is bigger than the new ones created, at least in low innovation sectors, and which makes extremist movements grow out of the general frustration with the state of things (isn't Trump the result of "disruption" in politics too?).
However, in my opinion Universal Basic Income will fix all the major problems acting effectively as a universal VC - and paradoxically a healthy one as not guided by buzzwords or credentialism, which should be the only way any subsidy work, as it frees everyone from black swan risks which are fruit of unexpected outcomes of technological advances (and a good thing per se), and enables them to work on bettering the world in an amazing way (my speculation). Until the AI comes along... Well, that's for another story.
[0] https://m.signalvnoise.com/venture-capital-is-going-to-murde...
[1] https://medium.com/@willszal/venture-capital-as-socialism-47...
[2] https://www.technologyreview.com/s/515926/how-technology-is-...
Edit: build an argument