It's "mostly" equity. If a company doesn't exit for anything it's not on the hook for the VC $, there are no monthly interest payments, etc. OTOH if there's a g

It's "mostly" equity. If a company doesn't exit for anything it's not on the hook for the VC $, there are no monthly interest payments, etc. OTOH if there's a great exit that clears the preference stack, then the liq preference is irrelevant. A bit more debt-like in the middle.