It's a fallacy to assume IPOs are the only way to burst a bubble. Funds and institutional investors still hold a lot of capital that traces back to the Average Joe.
The burden of risk is just not directly put on them.
The burden of risk is just not directly put on them.
That's a different question. The claim that a VC investment collapse would hurt ordinary people through their pension funds is false. There may be other important effects for specific sectors or groups of people.