Anecdotal, but: Startup I worked at hired a bunch of SpaceX and other musk company employees as middle management, during the hyper growth phase and every single one of them was simply awful. Some were just abusive managers, many were just not that effective. The worst one was a manager that would swoop down with heroics, take credit for other people's work, not support reports on ideas you had, played the blame game…
VCs and other startups love to shower these people with money like they’re the second coming only to find out that their success was purely circumstantial and mostly a confluence of a ton of factors that had nothing to do with them like luck and timing.
So if you personally see a lot of failures, that doesn’t mean the VC model is failing. Although most VC funds lose money (there’s a power law for their returns too!)
Paul Graham wrote a scathing summary of VCs, and one reason for YC is to be more honest and fair (YC still aims for capitalist gains, they just play the game differently). http://paulgraham.com/venturecapital.html He also wrote that it is near impossible to pick investment winners (which is what VCs are “supposed” to do).