Entreprenuer's View of VC Valuation and Deal Structure

A nugget from this post by Matt Blumberg:

"[V}aluations and deal structures can end up being about VCs getting as much upside as possible out of their winning deals to cover their losses from their zero-return deals. What bugs me about this is that entrepreneurs don’t have that same luxury of a diversified portfolio – they are 100% invested in terms of their human capital and often their investment capital in their company."