It's a bad idea most of the time but sometimes it works. The smart investors have a portfolio of many bets, and it's priced in that most won't succeed. For the entrpreneur I think this is a bad idea but for the investors it's workable if they can do it a few dozen times over.

It's just injection of both money and risk, amplifying the result. It'll fail more often than usual. But if it succeeds, wow.