But more importantly, I don't think VC or VC money is always bad, but I get extremely wary when a relatively small company gets a shitload of money that they'll then be forced to grow into a way that means they'll lose focus on their core product.
I remember when I told a friend of mine that Postman raised nearly half a billion dollars in total funding, and his jaw dropped "You mean that browser plugin that allows you to make REST calls???" And sure enough, postman got filled with more and more "enterprise-y uselessness" to the point that I just stopped using it.
Irrationally so. That's my point. There isn't a strong indicator that correlates to a company being a craigslist vs a company being a Postman. The median is somewhere in between and its not as dire as you pose it to be.