Phrased less charitably: rich people (VC partners) think paper-rich-cash-poor people should continue being cash-poor so that rich people have better negotiating

Phrased less charitably: rich people (VC partners) think paper-rich-cash-poor people should continue being cash-poor so that rich people have better negotiating leverage over them. Doesn't this work against the VCs when the startup with cash-poor founder gets a subpar M&A offer? I thought VCs had become accepting and even encouraging of early founder liquidity.