To understand why swing-for-the-fences mentality prevails, you have to understand the VC model.
People raise funds and generally shoot for +10x exits. So, for a particular vintage, a VC fund of 10M aims to grow to 100M. They are squeezed for time (many funds are for 10-14 years, some shorter, some longer) and can't necessarily sit there and let companies bubble.
If you are presented with such a large hurdle, the easiest way to do it is swing for the fences and see if one gains traction. Generally, the one that gains traction will multiply your money far enough to cover for the other mistakes you made.
People raise funds and generally shoot for +10x exits. So, for a particular vintage, a VC fund of 10M aims to grow to 100M. They are squeezed for time (many funds are for 10-14 years, some shorter, some longer) and can't necessarily sit there and let companies bubble.
If you are presented with such a large hurdle, the easiest way to do it is swing for the fences and see if one gains traction. Generally, the one that gains traction will multiply your money far enough to cover for the other mistakes you made.