> By early 2014 the three had $4 million in seed funding and had narrowed their focus to Bitcoin apps. But they found that the software tools they needed to build those apps didn’t exist and pivoted to building the tools themselves.

> ON A MONDAY MORNING seven Chain.com employees sit in a circle on their Aeron chairs plotting the week’s plan of attack for various projects. The shoptalk is a jargon-fest of “open assets,” “confirmation time,” “UI,” “sidechains,” “federated chains” and, of course, “coins.” Khosla Ventures’ Rabois, the company’s lead VC investor, says he backed Chain.com because it had a nucleus of “10X engineers,” which he defines as “engineers who have the output and insight that’s ten times better than a regularly good engineer.” Elite groups like these, he says, are essential to build tools “so more regular engineers can build applications” for blockchain.

In The Industry, how common is investing $4 million in a company before they have even "narrowed their focus to Bitcoin apps," based on the unproven potential of the founders? What am I missing?