Here's my (decidedly cynical, I know) take on this: Sam's model makes sense if the investors actually care about the product and are able to at least somewhat

Here's my (decidedly cynical, I know) take on this: Sam's model makes sense if the investors actually care about the product and are able to at least somewhat judge & shape it. If, on the other hand, funding startups is a lottery for the big payout item, party rounds make sense for investors. And the same goes for the company side - if you just hope for the big acquisition, at first glance guidance matters less than runway.