>> the key assumption that's baked into that statement is that everyone universally recognizes the 'best deals'. Of course that's not certain. The wisdom of the crowd may be better than VCs at recognizing the 'best deals'. I can easily imagine 'best deals' that the crowd identifies that VCs wouldn't fund.

Wholeheartedly agree with your statement - but keep in mind that VCs typically get access to way more information than what's available through a crowdfunding site.