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what exactly is there to spend it on? Unless you're not talking about software businesses, it's all salaries of software engineers. So this *effectively* means "don't hire". Just say that.
Curious, if they get funded what exactly should they do with the money if not spend it?
Just because you can, doesn't mean you should. Scaling up the team too much too fast can really slow you down.
Is there a Paul Graham classic blog I should read on this one? Many thanks, @paulg 
Hey @paulg , I am wondering how you put this into perspective in terms of a startups aim of massive growth? Isn’t money spent to grow after product market fit well spent money?
Funny thing is, first question anyone asks a founder is "How big is your team?". Hard to break the peer pressure to over-hire.
I think people also tend to get the true meaning of this question wrong. Having a big team itself is not an achievement. Being able to achieve loads with the tiniest team possible speaks for efficiency and true value in the team. Only scale up what helps you grow tremendously.
It would be Interesting to have companies go through YC where they DON'T try to raise money at the end of it. Would many of these companies be better off just living on the cheap and eating ramen longer (and therefore not forcing hiring too early on?)
Interesting idea. I believe #demoday leads to a competition (who raised what at what valuation) that is bad for the startups. When you are raising a lot it feels like winning when nothing is achieved. Very misleading and dangerous pre PMF.
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