It doesn't require the debtor to pay back the difference between the collateral liquidation value and the loan value.

I don't think any bank though is giving non-recourse loans for risky or depreciating assets (investors do that). It's usually for things that the bank is confident will be a good investment anyway if the loan goes sour - you default on the loan? Fine. But we keep the land.

For late-stage “startups” (e.g. Series D+ companies that have just not IPOd) they have done this in the past, but that was in the pre-COVID tech mania.

Often they act as middleman, finding someone else that wants exposure to the startup when interest is oversubscribed.