[001sky]

Your making silly assumpyions about VCs and how they operate, ones that you can't justify. An easy exit that returns 20-45% on a 1-2 year investment is a no-brainer if the only other option is going to zero in a time-wasting pain-in-the-ass situation. That is quite distinct from saying that this "ideal" investment sold to LPs. And its quite distinct from rational "binary bets". While VCs screen based upon threshold potential returns, the probability of being a 10x company <even after passing the screen> is order of magitude <10%. So, its silly to say that all vc exits are large exits. But since exits have more prestige than chapter 7s, disquising your failures as exits has <value>. If you can do this with non-dilutive financial returns, you a strategy that may be better than the alternative/s.