Properly executed an explosive startup that burns fast and fails hard can still net the founders substantial change just by setting their own salaries and running investor money through the ringer fast and furious.
I don't really think its in the self interest of someone trying to make a successful product in tech to take a landslide of outside capital to try to grow a functioning, healthy business. But its definitely in the self interest of the founders if the goal is to get big and blow up. Because getting big alone has many benefits - besides the aforementioned pay, you become connected and influential in the industry in ways that can absolve you of responsibility to outside money in your future ventures or interests.
Yeah there absolutely is a perverse incentive there.
Investors throw so much money at these guys and by doing so... can create incentives that straight leads to driving the investment into the ground and walking away with a bag of cash / future prospects.
YC’s own Sam Altman parlayed a failed startup into millions of dollars which he later turned into hundreds of millions with the mentorship of Paul Graham.
I don't really think its in the self interest of someone trying to make a successful product in tech to take a landslide of outside capital to try to grow a functioning, healthy business. But its definitely in the self interest of the founders if the goal is to get big and blow up. Because getting big alone has many benefits - besides the aforementioned pay, you become connected and influential in the industry in ways that can absolve you of responsibility to outside money in your future ventures or interests.