You simply need to become more formidable.
I think VCs may be good at judging confidence, but a wide array of stereotypes and predispositions come to mind when picking whether someone with no track record will make it. I really don't get the feeling that VCs in general are good at picking the formidable founders, and in the end, really just place bets on the guys who someone else already bet on. I think YC does a great job of picking founders who have the potential to be formidable and allowing them to raise after the program.
The sentence you are responding to is the whole point of the article. VCs don't have to be good at picking formidable founders. (I don't know whether they are or aren't.) They just have to believe that they are good at it - and they do.