Why do they need VC backing? They aren't paying advances to authors up-front, and paying royalties later doesn't require a bankroll of investment (you only have

Why do they need VC backing? They aren't paying advances to authors up-front, and paying royalties later doesn't require a bankroll of investment (you only have to pay it after the revenue comes in). They would need funds to pay for actually printing the books, but even this should be doable with their existing investors (which includes former publishing CEOs and big name authors) and bank loans. If this were VC-backed I'd feel differently, but as it's described it sounds like a great option for authors who want to take a risk on themselves.