> Well considering the 50K is basically a rounding error to most VCs the money is not an issue. Given the difficulty of assembling a world class team to let one disintegrate just because their current idea is poor is not a good use of a limited resource.
You do not seem to understand how fund management works in the real world. A venture firm simply cannot deploy a nine-figure fund by writing $50,000 checks to keep on ice every entrepreneur it thinks has potential.
Furthermore, I don't see how you can conclude that founders who thought it was a good idea to "lock customers into discount rates that even with infinite retention won’t become profitable" represents a world-class team. The post-failure behavior of one of the Homejoy co-founders[1] is even more damning.