There's a lot about those statements that seems imprecise. Private partnerships do not generally have equity, per se. Perhaps they meant private-corporation.

There's a lot about those statements that seems imprecise. Private partnerships do not generally have equity, per se. Perhaps they meant private-corporation. A corporation can have several issuances of shares. These may be equity (ownership) or non-equity (preferred). Perhaps the VC held non-equity shares. Perhaps the grumbling was pre-investment. In any case, it could've been better written.