>Large decentralized infrastructure like the internet, DNS, email, and the web was largely built by VC-backed companies.
The poor need the rich to start a company as banks are prevented (by the rich) from lending to them.
The rich like VC as it's a tax write-off, they invest in VCs and get even more richer.
Most startups fail, the VC's investors get any leftovers and poor founder walks off empty.
>What about when things go wrong?
In general, if you lose money on an investment, you can offset that “capital loss” against a capital gain you have from something else.