Do VCs or investors investigate what projects they invest money in? (Related to the latest faux pas)

Most startups that VCs invest in do not survive or succeed as originally planned.

According to statistics, only 1 – 2 out of 10 VC-backed startups end up as a major success or unicorn.

I read about how BuilderAI claimed to use artificial intelligence to create apps, but in reality, their code was developed manually by hundreds of engineers in India ("AI washing"), and they even raised with this fake idea around $ 450 M+ from such companies like Microsoft or Qatar Investment Authority, now they are bankrupt.

🥲

I understand that running and building any business is not easy, but sometimes I feel like VCs/investors are throwing money away completely irresponsibly without doing any investigation.

However, if they gave it to the right people based on proper research, something better could be invented or built.

Do you think VCs and investors should be required to conduct mandatory screenings of potential companies? In other words: "What should be done better?"

Because if they already do, they might not be doing it well, and it ends up damaging the reputation and credibility of both the investors and the startups they fund.