Actually, what's happening is pretty obvious: they are investing in the founder, not the idea.

Think about it this way: $10 million is pocket change for VCs. Even if they lose all of it, it would barely make a dent in their yearly metrics. However, the potential gain is huge: they see in Ms. Perry someone who can identify a big demand in the market, take the initiative to try to do something about it and find a clever and catchy way to market it ("WiFi for energy"). So spending $10 million to let her gain more experience in business and build a deeper relationship with the VCs is a pretty good investment.