> ...The problem is not so much the money itself as what comes with it. As one VC who spoke at Y Combinator said, "Once you take several million dollars of my money, the clock is ticking." If VCs fund you, they're not going to let you just put the money in the bank and keep operating as two guys living on ramen. They want that money to go to work.

http://paulgraham.com/startupmistakes.html

This is an example of A16Z killing a startup. They only care about about the big hits, so they'll happily dump too-many-millions into small products like ProductHunt and RapGenius, trying to force them to Get Big Fast.

ProductHunt should've been operated by two people for 5+ years but they raised too much money. Communities can't really be bought with money. You have to grow them organically and authentically over many years. Hacker News and reddit are perfect examples to emulate.

Digg is an example of the VC way of doing things.