VCs suffer the delusion that they are innovators. What they really are are managers of risk . They operate far enough away from the edges of true innovation that they can safely create portfolios of companies with a high degree of certainty of overall profits. The actual level of innovation is irrelevant. And to them, innovation means a new business model. Processes that generate revenue and profits. While there is nothing inherently bad about this, it is not the same as inventing new ideas.