If only 10 out of 100 of your investments make it, does it matter if one of the 90 failed because of lacking backups? Their risk strategy is diversification of investments. Not making each investment itself bulletproof.
The strategy is about as silly as having ten babies and expecting that one of them will make it. It is what you would expect out of the worst poverty-ridden parts of Africa.
An alternative is to select and nurture your investments really well, so the rate of success is much higher. I'd like to see the script be flipped, whereby 90% of investments go on to becoming profit making, secondarily with their stable cash income being preferred to big exits.