VCs provide a service that is not entirely parasitic (although I do enjoy the term "vulture capital" :) ). They provide funding (good) and they provide an increased ability for you to sell your company at a higher price (good). Take the Oculus situation - Oculus did not need that $75 million off the bat (via VC $), but it did set the bar for their value and acquisition at the order of $2b. Palmer Lucky is now in his early 20s and worth $700m, hard to argue that he did not walk away with a good deal. (And yeah, its not always a good deal, but often times a better deal than founders would get flying solo).