You ever try to buy a house? The loan you get means jackshit to the lender. Your loan is going to get bucketed and sold off into large funds. Those funds in the aggregate hold value. No one really cares if you, who you are, your house, etc, are a particularly good investment in the macro scale.

I suspect it’s similar in VC funding. You are just a company that sorta fits a conventional loan. In the macro sense, just a few need to hit, but they could care less about your special little company. You are packaged to investors.

I imagine a world where the government buys startup backed securities to prop up the tech sector, in which case you’ll see even more startups. Right now it’s any Joe Schmo with money that act like the Fed.

That way everyone and their mother can grab a loan for a house and a company, it’s a macabre form of socialism, uniquely American - so long as you make the monthly payments. Truthfully If I was a lender I’d have all my startups go public within a year and start paying back the debt via cashing out their stock, because that’s way more predictable than hoping your company becomes profitable or useful.