I don't understand how this adds up. If you're losing money to the tax man you're still making money overall. Now, you could say 'screw it' and put the money you're making into long-term risky bets, but either they don't pay off, and you've just lost money, or they do pay off, and you owe even more tax, with even less efficiency. If you wanna gamble, you can gamble if you want, and the supposed idea of VC is that if you take many risky bets you'll be able to win on average, but it's not tax-efficient at all because you tend to win all at once.
(As a general rule of thumb, I'm deeply suspicious of any 'it's a tax write-off' explanation for people losing money: its extremely rare for losing money to make someone better off overall. It may be advantageous for them to move around where and when they say they are losing money, as you'll generally be more tax-efficient if you make money consistently and through activities in areas which are not as highly taxed, but it's not generally a useful strategy to light cash on fire to reduce your tax bill: you tend to be out of more money than you save on tax)
(As a general rule of thumb, I'm deeply suspicious of any 'it's a tax write-off' explanation for people losing money: its extremely rare for losing money to make someone better off overall. It may be advantageous for them to move around where and when they say they are losing money, as you'll generally be more tax-efficient if you make money consistently and through activities in areas which are not as highly taxed, but it's not generally a useful strategy to light cash on fire to reduce your tax bill: you tend to be out of more money than you save on tax)