I think at some point people will realize this is not counter intuitive, but actually a logical conclusion - if you raise $10m to build what another company produced for $15k, you're setting yourself to fail.
You have VCs or other investors now, with a lot of power over the company, whose interests do not necessarily align with the company's interest and who don't necessarily understand your area at all.
You have a lot of money which can be very useful but can also act as a cushion that insulates the company from reality, allowing it to be lazy and stupid.
You have VCs or other investors now, with a lot of power over the company, whose interests do not necessarily align with the company's interest and who don't necessarily understand your area at all.
You have a lot of money which can be very useful but can also act as a cushion that insulates the company from reality, allowing it to be lazy and stupid.
(Maybe it's the start up version of the Resource Curse: http://en.wikipedia.org/wiki/Resource_curse )