Not true at all. The general opinion of investors in Silicon Valley is that is that after a seed round, founders should take a salary where they aren't worried about their bills but aren't getting rich.
That's incredibly not true. Sure you have to put in some work to get funding, but if you have a good enough idea+team+story+market, or existing product with traction and lots of room to grow, no one is going to expect you to cover your cost of living.
My question -- will VC-funded startups ever enter the realm of the non-wealthy and/or beyond bro's willing to bunk up in a studio apt?