Yes, but that risk has flavors. Funding the Moon Landing was exceptionally high risk [1] because NASA did not yet have a minimum viable product. VC's that I've met don't usually take that level risk, they wait until there is at least some expectation that the team can deliver something (hence the MVP requirement in many series A rounds).

[1] In "Proofiness: The Dark Arts of Mathematical Deception", Charles Seife claims that NASA asked GE to calculate the chances of success in the Moon Landing and came out with 5%. http://www.amazon.com/Proofiness-Dark-Arts-Mathematical-Dece...