I’m not sure I agree with this take. The current VC model is a fund model where the capital allocators raise a lot of capital with the promise that they’ll deliver returns within a ten year period. From there, the VC firm is required to allocate capital, regardless of the economic environment or companies on offer. In order to deliver those returns on that timeline, VC terms and conditions are often counter to the entrepreneur’s success…with the investor creating governance control on the venture regardless of their ability to operate a business. VC funds (and private equity funds) actually destroy productivity as they masquerade as value creators with LPs. Debt, on the other hand, is a priority claim on cashflows but they often don’t have as much governance influence on the venture. That’s good for a business because it leaves the residual claims on the equity of the business with the entrepreneur.