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Yes, I think what you're witnessing is badly managed companies, or companies that don't have much of a future. I'm fairly sure no VC on earth would recommend hiring 20 more project managers.

I agree, but I also think that if your product isn't where the VC thinks it needs to be, and you've got plenty of money in the bank, that VC isn't going to tell you to take all the time you need: they are going to tell you to focus on hiring great people so you can build faster.

"You need to hire more/better people" is just the standard response to almost any problem.

That's the VC game. Those funds aren't giving you millions of dollars to keep in the bank. You grow (by spending it) or die.

How else could you put invested money to work in a company with no assets except to spend it on advertising though?