I think this is the exact situation I'm asking about, so thank you for answering! It's a good discussion point.

To me it seems like so many companies start like this, but fail to get past the profitability stage. I guess my question is, are these companies going about this the wrong way? Maybe starting with a big surge of funding to get off the ground is giving false hope to products or corporate strategies that just aren't sustainable. I'm wondering if starting small and letting things grow organically, slowly, is more effective overall in terms of success for businesses. I have no idea though.

What are some examples of companies that grew rapidly with VC funding and eventually became successful, profitable businesses? Netflix, maybe -- anyone know others? (I'm showing my ignorance here, I'm sure there are many obvious ones!)