Sure, my experience is that a bank will always ask for some sort of security with old fashioned loans, but I can't pretend I know what kind of deals would a bil

Sure, my experience is that a bank will always ask for some sort of security with old fashioned loans, but I can't pretend I know what kind of deals would a billion dollar company get. But even if personal liability isn't on the line, things like having the bank seize your assets if you can't repay would still be an undesirable liability. As for the bank owning shares, sure if you default they'll take over whatever they can get, as far as the contract goes, but it's not the same kind of deal. VCs or angels effectively buy shares to sell them later at a higher price, whereas the bank is just lending money and hoping to see it back with interests; the bank may take over ownership of the company if it goes bankrupt but it's not like they'd be able to sell it for much profit, if any at all.