First, both VCs and startup founders may be young, naïve, and people in a hurry. They may be equally hooked to stories that look too good to be true. Second, investors who put a slice of their wealth with VCs are usually the rich and the ultra-rich who, unlike the quintessential small investor, are supposed to have a better understanding of businesses. Third, not all startup stories are the same. For some the operating costs do not keep on rising and profits can grow exponentially beyond a point.