I'm oversimplifying and muddying things by referring to funding, so let's bring this back to what it's supposed to be about: I believe, from what I know, that this is a company with strong fundamentals. (You can inquire more if you are interested, but I don't feel at liberty to provide specifics for a private firm) But you're right: "No Silicon Valley VC" will support an idea that fails to appeal to their biases. And I question where their biases lie. And I question the effect that their activities have on the stability of the industry.

It's true that I have other friends who have very well-funded companies and who I believe have businesses with strong fundamentals. (One of them: a social gaming company) But I also can't deny that all of the friends who have received significant support in this industry have really similar backgrounds and attributes to them, and that the homogenous nature of the industry - in diversity and in thought - is disturbing. I think it discourages healthy growth of the industry from the sort of people who would disrupt the homogenous nature of the industry. The disruptors hate being disrupted!