I've actually thought about this, but I think there would be conflict with the investors in that there might be a sense that their shares are being taken hostag

I've actually thought about this, but I think there would be conflict with the investors in that there might be a sense that their shares are being taken hostage, especially if this plan wasn't disclosed upfront. If the company has no interest in an exit or IPO, then really the only interested buyer of the shares is the company, which would depress the value of the shares compared to what they would fetch on the open market. Also, something similar would have to be worked out with the employee stock options presumably, and then you would have to work out some other profit sharing mechanism anyway in order to retain and attract new employees.