Among the most spectacular examples of bad judgment: Sequoia Capital 's seeming refusal to distribute any of its 8 million shares of Etoys, the e-tailer that was going to drive Toys "R" Us out of business.

FORBES: In the Lurch

In fact, electrical engineer Limor Fried founded Adafruit Industries, an e-commerce website that distributes a veritable treasure trove of toys, electronics and ways for children to learn to build programs, apps and more.

FORBES: How to Get Kids Interested in Technology

It passed on Etoys because it mistakenly assumed that Toys "R" Us would own the e-commerce market.

FORBES: The wild bunch