Isn't there an element of survivor balance there though? It worked for amazon but how many dozens of companies raised heavily and still failed to "capture the flag" on the other side?
It doesn’t matter - if you’re the founder of a company and you were able to convince investors (equity) or banks (debt) that your money losing venture can eventually make money, why not continue taking money from them? If the venture fails, your investors and/or bank loses money and you go out there and either start another business or get a job.
On the other hand, if it’s your own money, don’t get caught up in the sunk cost fallacy.
On the other hand, if it’s your own money, don’t get caught up in the sunk cost fallacy.