[IshKebab]

I think it is that when investors invest, they expect you to use their money to grow quickly. You can't just sit on the money and grow at the same rate.

That means you end up getting huge offices, loads of employees, etc. It becomes a gamble that your product will be successful at a huge scale rather than a natural growth from a small scale. If it fails you still have the hundreds of employees and massive rent, but no revenue.