The BS line is just one part of it
The VC and to some extent the Private Equity industry can subsidize money hemmoraging business models and fuel massive growth of bad unit economics until they dump them on the public. Uber and WeWork are just two high profile examples.
In fact, then openly admit they stay away from sustainable and profitable businesses in favor of massive subsidized “traction”.
That’s the loophole - same as colleges can jack up prices on liberal arts degrees and then student loans get bought by Freddie and Fannie.