Companies die because nobody is willing to work on the code anymore.
If VCs ever came to expect less than 90% of their investments to essentially go to zero, maybe that would change. But they make enough money off of dumb luck not leading to fatal irreversible decisions often enough to keep them fat and happy.
One: Have you ever tried to take a narcissists' money or power away from them? You would think you were committing murder (and some of them will do so to 'defend' themselves)
Two: All the stuff we aren't working on because we're working on stupid shit in painful ways is substantial.
If VCs ever came to expect less than 90% of their investments to essentially go to zero, maybe that would change. But they make enough money off of dumb luck not leading to fatal irreversible decisions often enough to keep them fat and happy.