I think it’s important to remember a company is that, a business, they sell a product. I think the issue is when the company has no method to be sustainable, the problems start to reveal themselves.
Whether or not a company is VC funded, it is, that a company and the intention is to turn a profit. I do think companies without a good business model though are more susceptible to adopting bad practices out of desperation to remain viable.
The reason I don’t think we should simply ban a thing that is VC funded, is because there are plenty of reasons a company can go under, and we’ve seen that it can have nothing to do with VC funding (eg CTemplar). Likewise we’ve also seen companies with a good model, end up being quite successful, Proton, Bitwarden, Matrix etc.