Meh, there's risk involved, but saying it's a "recipe for disaster" implies that you think the outcome is nearly set or that the odds are against you. I challenge that line of thinking.

You don't necessarily "got 6-12 months to make your company profitable or it either fails or you get into massive debt." A counter example could be that if your company's net begins to converge towards profitability, your burn rate would decrease and it's entirely possible that your 6-12 months becomes 18-24 months. Bail if you don't see that convergence and you'll still be able to re-enter the workforce without wiping out your savings. It's not an all or nothing game.

Alternatively, just get to profitability in 6-12 months :)