Makes me wonder if a stronger system of government subsidies could replace the need for VC for some startups. The government agrees to back your expenses for X number of years until you have the means to pay back the investment, and if the startup flops in the end, the government takes the IP. If the startup is still deemed to have potential, the government continues operating the company as a state-sponsored org or folds it into a state agency to ensure the livelihoods of the startup’s employees.
End result is that startups aren’t forced into situations by VCs where they have to go public, and if they end up going under anyways by failing to pay back the government’s investment (tax payer money, basically) it is seen as a purchase of potentially valuable IP which can be made available to the public for the betterment of society and industry.