[steamy]

but I don't think that it applies very well to startups.

Do you mean contemporary tech startups? As you may know, startups are businesses after all and the rules governing their operations are the same. When your business runs out of cash , you need someone to throw you a lifeline (debt or equity), or sell some assets to raise money or unfortunately file for bankruptcy and let nature take its course and creditors to recoup some of their investments.