I think the worker co-op model has a lot of potential for tech startups. They're more stable than other ownership models, and the desires of the workers tend to be more aligned with consumers than the consumers are with investors (and obviously a worker co-op is far more aligned with the desires of the workers).

The primary advantage of venture capital is access to capital for growth, which isn't a great fit for purely digital companies with low capital requirements and the ability to bootstrap. The ability to rapidly grow is handy, but primarily addresses the needs of investors, who make their money off of growth. Getting investors to satisfy the needs of investors is awfully circular.

The big reason we don't see tech co-ops is simply tradition. Most big tech companies were VC funded. Most good startup advice comes out of VC companies like YC that naturally push people towards venture capital. On the flip side, worker owned co-ops are most common in the food industry of all things, even though that is quite capital intensive, because of the same sort of tradition-inertia.