Equity for funding is not the same as a loan or debt on the capital structure, though it does have some overlap because if equity stake has no preferences in the event of compelete loss, it will be as worthless as uncollateralized debt, but, VC funding is far from the notional value of the uncollaterized debt that is allocated to relatively few endeavors out there today…
Perhaps if VC's funded many more things to the same notional as the uncollaterized debt extended globally (not "valuations", not re extending to the same companies after previous funding from the same one), I would agree to degree , if they faced 100% loss of value extended if the endeavors they funded didn't pan out (not considering firesales of assets that may have been used in such endeavors during the bankruptcy/liquidation process).
Perhaps if VC's funded many more things to the same notional as the uncollaterized debt extended globally (not "valuations", not re extending to the same companies after previous funding from the same one), I would agree to degree , if they faced 100% loss of value extended if the endeavors they funded didn't pan out (not considering firesales of assets that may have been used in such endeavors during the bankruptcy/liquidation process).