Meh, straight debt (not convertible) isn't available to risky startups. The venture debt industry depends on tight relationships with VCs to ensure reasonable

Meh, straight debt (not convertible) isn't available to risky startups. The venture debt industry depends on tight relationships with VCs to ensure reasonable repayment rates. In some cases they reduce risk by reselling part of the debt. In all cases, they're themselves leveraged, lending money from limited partners and not just themselves.