Real income inequality comes from wealthy 0.01% bribing politicians.
Not 0.1% VC giving some money to 10% developers so that we can get some innovations every once and then.
Getting rid of VC money will just slow down innovation, entrenching existing players in their current positions and allowing even more capital to flow into bribing politicians.
Politicians in turn will need to steal even more, through inflation and taxes the really wealthy can avoid, from the middle class.
We'll shrink the middle class even more. Almost nobody will be able to afford a house. Homeless will just die.
One step closer to current South America, which I reckon is some 20 years away for the USA and maybe even for Europe.