VCs also anticipate they'll be wrong a majority of the time about a company. That means, a substantial amount of the time (maybe a majority of the time?), they'll be throwing a lot of money at "disrupting" existing businesses with no successful alternative.
But since profitability is better thought of in terms of averages or expectations, it makes no difference if the companies in question are all moderately profitable, or a few extremely profitable companies, and some non-profitable ones.
If the business fails, then it has disrupted existing businesses for no gain. But if it becomes extremely profitable, then presumably it has made some cost savings in order to be able to do so, and so deserves these profits.
If the average business is profitable, then the investment is justified, both for the investors, and from the point of view of society as a whole.
