The overwhelming majority of those "winners" fail. These funds aren't anointing the king, but rather are just trying to make a bet, and it's a bet they usually lose. As you said, their funding gives the entrant a leg up (usually if there's a significant capital cost), but in this case such funding provides astonishingly little advantage of scale.

This isn't an example of a bubble. It's an example of a really comically silly investment.