I think he is just saying, that Startups are overvalued or worse might be not long-term viable because unit economics are out of whack. But investors are happy

I think he is just saying, that Startups are overvalued or worse might be not long-term viable because unit economics are out of whack. But investors are happy to invest across different stages as long as those startups show growth. It is a much easier decision to fund something at a later stage then pull the plug, because new funding round generates paper profits. Where is if it is a zero, you don't look that good in front of LPs.