Eh, I've seen a number of startups sunk (as in went-out-of-business sunk) because of code quality issues. Eventually you hit a wall where every bug you fix introduces more bugs, and the product does not converge to a state where you can launch it. Then the VCs start getting impatient and you run out of money.
The point where this happens depends a lot on problem domain. If you're doing well-understood CRUD-screen database stuff but applying it to a novel business domain, you're probably not going to hit code quality issues. If you're doing heavy algorithmic, OS, financial, or networking stuff, though, where failures compound and any one bug might take the whole system down, you really want to pay up for experienced developers that have seen all the ways these systems can fail.