Through venture funding, rich people legitimate startups. Thus, they confer value upon the startup.
Paul Graham is Still Asking to be Eaten
Holly Wood
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It’s actually quite the opposite. The venture funding usually follows a glimpse of great potential in the startup. The customers/users legitimatize the startup. It doesn’t matter how much money you throw at the startup…if they don’t bring some sort of measured value to the world, they’re a ticking time bomb.