Yes, but it also sounds like VC necromancy. Investing in a startup undertaker gets them on the hyperscale train, preying on the death of other startups. Eventually, they need to find new and innovative ways to make startups die so they can feed off them. They become homicidal undead unicorns.
A startup that specializes in tearing down failed startups could tear itself down when they are no longer needed. Like the startups it had liquidated, the liquidator itself will be liquidated, then capital will be available again to start the process anew with a new bubble and new crops of startups. It is the cycle of life, such a beautiful thing to behold.
All that is missing is NFT's of the failed company's IP, and an ICO.
Easy, just open a startup wind down wind downer company and you have a brand new market.
What's the exit plan for a startup vulture?
Turn VC when the capital markets return to (what they think of as) normal and inflate the next bubble.
At least when those startups have to wind down they will know exactly what to do.
“We dogfood our own product to shut ourselves down”