This is disturbing. Venture Capital has an established record of funding broken business models that push profitable but low margin establishments out of business before going belly up themselves. This is antisocial behavior that does serious damage to markets, yet in this analysis the only considerations are for maximizing returns on capital. There isn't even any mention of how much damage this ha ha funny not normal way of doing business does to traditional commerce. All those golly back to the drawing board scenarios competed with companies that didn't have explosions of capital to back them up.
Overall enabling venture capital investment is a positive thing but as always we need to be realistic, avoid doing harm, and be eternally vigilant lest we poison our own punch bowl.