> Look at every tech startup that has VC money poured into it. Their headcount explodes in response to the huge budget they suddenly have. This is not quite co

> Look at every tech startup that has VC money poured into it. Their headcount explodes in response to the huge budget they suddenly have. This is not quite correct. The "headcount explosion" is not simply a reaction to the investment - rather, it is the whole goal of the investment. It's not like the founders say "oh great, we have the money now, let's hire people"; in fact, it is mandated by the VC investors: "we have invested to you to hire people, now go and do it". The whole point of VC investment is to grow the company value (evaluation) as much as possible in as short the time as possible, and then find someone who will pay that new value. to buy the company from them. There are nuances of course, but that is the bottom line.