Raising capital and valuations are just temporary measures and good faith to turn the product into a company. Having money to hire more people just exacerbates

Raising capital and valuations are just temporary measures and good faith to turn the product into a company. Having money to hire more people just exacerbates the problem. They now have higher operating costs (where this new capital goes) and now need to have the even higher revenue to create a margin that makes it all worth it in the first place. OR you just get stuck in a Groupon situation where we have big revenue off big costs (salespeople).