The mentality does, however due to lack of funding they tend to fizzle out fairly quickly.

I would argue this is actually a bad thing and it's why the Bay Area tends to produce lots of successful tech companies and other areas have trouble with it. Many would-be profitable businesses die out because they lack the funding necessary to get over the initial hurdles of starting a company. The willingness of investors in the valley to throw money at anything is a huge boon to startups - even if it wastes a ton of money in the process.

On the other hand profitability should still be a top goal of a startup - not investment. Many startups seem to have confused the two.