Who cares if it's 99% of GDP of that is going into the hands of venture capitalists?
SV-style tech startups distribute more equity to employees than any other sector of business I know of and the average VC’s returns are worse than private equity, worse than the stock market and worse than real estate. You only hear about the biggest winners, but venture capitalists are taking on very long odds and the vast majority lose. More importantly, we all benefit from the advances the industry leads to—such as this wonderful phone I’m typing this comment into that can access and search nearly any encyclopedia, map or song in the world in seconds, from almost anywhere.
You might as well say Hasbro distributes more money than most companies because of all of the Monopoly games they sell.
If VCs make no return on their investment then they have just dumped millions of dollars into the pockets of startup employees and vendors.
I can trade my RSUs for real cash every six months after they are deposited in my account. I know the potential value of my next RSU grant every 15 minutes as it is updated on my Google Sheets.
The VCs make a return by diversifying their bets. But as an employee for a startup, you are not well diversified.
On a related note, Warren Buffett made a bet with hedge funds that he could have better returns just by investing money in an index fund over 10 years - he won
Cell phones were not created by tech startups.