<Begin Rant>
And very successful which proves they known what works and how to make it work. Most VCs rely on 1-2 investments to really tide them over, a few to make money to certain extent, most fail. Not odds which imply how awesomely well they understand the industry, they like to think of themselves as an expert at all shit. They are not, nobody is. Please riddle me that how VC knowledge is not over-hyped as you say founder's knowledge is over-hyped. If, India story in last few years has shown something it is Indian VCs are amazingly inept at identifying good models. They keep on putting money into businesses which have no differentiation other than discounting, case in point Snapdeal (their new move sell a company they bought at $400M to someone else at $300M, much wow). Have you seen the money which was burnt at the altars of food tech, local delivery (hey after all proven business model as VCs like to say, worked in US we will throw money and make it work, else sell it to next idiot at more money and make merry). Most VCs are fucking me toos and will invest in a business because other ilk is doing it. Any sane founder inspite of the ego you cite realizes he/she ain't know it all and has limits so they need people to fill gaps, do things better than them and also of different backgrounds to bring perspective. The trouble is money bag VCs take no time to understand the business but auto think hey I know XYZ so it will automatically work in other industries, it does not. If as a VC you don't know something, say you don't know don't impart ignorance. The beauty is when a business fails, the founding team and the company staff gets brickbats, the VC just vanishes and hardly is seen taking blame, unless of course the logic is they just put money and don't provide any other add on which belies the reason you get them on (it is not just money). Nikesh Arora for example made lousy investments, yet took home a $100Milliion pay pack, that is as shameless as it gets. Also ego aside, when was the last time a VC did something awesome other than as Blankfein said "we do god's work" while GS was playing hopscotch with MBOs. Founders for all the flak do sometimes create things which matter, VC on the other hand come on for the joy ride of success but are rarely seen on the down low.
Sequoia India is over-hyped and will be interesting to see if they are not shut down like the ops in Israel were done. Context is key and as are markets. Success of VC firms outside say in the Valley does not mean they will have same success in other markets. VC firms outside do tend to have a much better mix btw.
A VC investor with experience of running his own business (and not much on banking, investing, research side) will make a poor investor.
Tell that to people running 500 startups, Y Combinator, Andreessen Horowitz which have great results and there is a reason people go to them. Only banking or research in itself is not useful either which is the CV of most VCs in India.
<End Rant>