Ultimately, investors want money back and them some. Or at least they should want it, definitely those who don't play with retirement and what not funds money instead of their own.

Moreover, tons of money being poured into financially bad shops kills real market and skews incentives. Companies that could be able to make profit die. Meanwhile, startups are motivated to target quick growth instead of actual profit - until bubble breaks and everyone is effed for no fault of their own.