The dividend stream model may work for a few angel investors but no VC can touch such a thing. They rely on making investments that have the potential to “make the fund” by increasing 100 times in value and thus enabling the VC firm to show its LLCs an adequate overall return, given that 70% of the investments will fail to yield a return at all.
The VC model is fundamentally broken, of course, but the internal logic of “go big or go home” is so entrenched and so systemic that it cannot be changed. I would therefore not advise any entrepreneur who can get a meeting with a real VC firm to destroy their chances by making the naive proposal contained within your article. There’s nothing wrong with your idea per se aside from the fact it can’t work for any institutional VC investor.