Why Top-Tier VCs Continue Funding Cash-Burning Startups Like Quirky Across Multiple Rounds

Jason Lemkin explains how successful startups like Quirky attracted multiple rounds of funding from top-tier investors despite significant cash burn. Lemkin argues that large VCs with successful exits (like WhatsApp) can afford to lose $50M on individual deals. However, once a bet clearly won't pay off, funding stops—and Quirky eventually ran out of runway.