Technology/medical startups too
Seem to feel the need to blow all their investor money on industrial design, beautiful mockups, and even dozens of almost-functional 'A-model' prototypes before they've got around to fully debugging their one piece of fundamental core technology (which would be so much easier had they not already made 100's of the core components, boxed themselves into a corner with a case-design etc etc...)
And/or part way through the development it becomes apparent there's a far easier and cheaper way to achieve the startup's core aim.... but no, we have to persevere with the expensive, unreliable, clunky approach (on which they hold a couple of patents) "because that's what out investors invested in"!
Do investors really think like this - or is it just what the startups tell us?