That’s not really a justifiable reason, though.
To you it isn't, but to some of us it is. For me the standard business cycle is not acceptable because I almost inevitably end up under the bus.
The Linux Foundation isn't a comparable example for me since it's a non-profit. As a result it isn't subject to the same market pressures for-profit businesses do, let alone VC-funded ones.
At this point, with everything I know and have experienced about the economy, politics and the world, I am trying to avoid depending on for-profit businesses as much as I can. I know how businesses operate, I know why they operate the way they do, I know what dynamics push them in the directions they go and I'm tired of being run over by the bus. If I ever form a business myself it would either be a non-profit, or a worker co-op, or both, as this will signal everyone who knows what I know what the direction of this business would be about.
I understand and I disagree. A demarcation emerges from the goal of the funding and its effects. For me, one example of bad funding is funding that drives user acquisition at unsustainable prices by a firm that is also significantly controlled by the funding source. This is predominantly what VC-funding goes to. VC-funding that goes to a non-profit that the VC has no control over, where the VC can't and does not demand financial return from, is not bad funding in my books. Corporate funding doing the same thing is also not bad funding. Government funding often has the least strings attached as it does not demand direct return, and this also is not bad funding. To top that off citizens can exercise control over government funding via the democratic process, unlike corporate or VC funding, where the vast majority have zero control, and are owed no accountability by the businesses.