The general idea is that startups which shut down like this impose a cost on _every other startup_ out there, because it makes people more hesitant to actually

The general idea is that startups which shut down like this impose a cost on _every other startup_ out there, because it makes people more hesitant to actually use and rely on services provided by startups due to their memory of being burned. Yes, this includes the next startup that the people working on that particular startup are going to work on too.