The thing with VC-backed companies is that many, and maybe most of them, are burning money and depend on raising fresh VC capital to stay afloat. If the VC spig

The thing with VC-backed companies is that many, and maybe most of them, are burning money and depend on raising fresh VC capital to stay afloat. If the VC spigot is turned off, all these companies will cut spending and/or fail at the same time. In a drought of fresh capital, the faster a VC-backed startup can reduce its dependence on other VC-backed startups, the greater its chances of survival.