> How else do you propose funding the quite expensive and risky enterprises that venture backs?
Easy: Risk. When you invest in a small private startup, accept that it's a crazy risky bet that will probably fail. So those investors should accept that the risk is there instead of trying to push too hard to the point of destroying the company that could've continued on a happy path of slow growth.
I think they completely accept there is risk of failure. That doesnt mean they have to hand the company over to founders when they could just as easily sell it to PE or another company.
Founders could also buy it back if they can find a lender, but if they are profitable enough for one to be interested, but the financials rarely work out for that.
Easy: Risk. When you invest in a small private startup, accept that it's a crazy risky bet that will probably fail. So those investors should accept that the risk is there instead of trying to push too hard to the point of destroying the company that could've continued on a happy path of slow growth.