It would apply to any deal in which you trade equity for something, but VC deals are usually not straight swaps of cash for equity. E.g. they usually get liqui

It would apply to any deal in which you trade equity for something, but VC deals are usually not straight swaps of cash for equity. E.g. they usually get liquidation preferences and the ability to veto small exits, both of which might decrease your expected value by truncating the curve of outcomes.