VCs are great if they're funding your startup. That's not what this article (and report) are about - they're about how VCs don't really serve their real clients, the LPs who invest in them.
This matters - those LPs are generally large state and corporate pension funds, who may be investing YOUR retirement money. Many funds are underfunded and now are trying to chase yields, because they have always projected 7-8% annual returns across the fund and the traditional stock and bond markets have not been consistently providing that. So they're dumping more money into PE and VC funds in a (potentially disastrous) game of catch-up, because they alternative would be admitting defeat and the need to either cut benefits or massively increase funding of the pensions.
This matters - those LPs are generally large state and corporate pension funds, who may be investing YOUR retirement money. Many funds are underfunded and now are trying to chase yields, because they have always projected 7-8% annual returns across the fund and the traditional stock and bond markets have not been consistently providing that. So they're dumping more money into PE and VC funds in a (potentially disastrous) game of catch-up, because they alternative would be admitting defeat and the need to either cut benefits or massively increase funding of the pensions.