Companies start with founders funding themselves through savings and friends and family rounds before institutional investors are usually even interested. But make no mistake, they start it as a commercial venture, otherwise they wouldn't have taken VC in the first place, nevermind that VCs wouldn't have funded it if not for their pitch on how it could become a billion dollar company.
And since Sequoia? It is primarily the Zed team working full time on it, which costs money.
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Companies start with founders funding themselves through savings and friends and family rounds before institutional investors are usually even interested. But make no mistake, they start it as a commercial venture, otherwise they wouldn't have taken VC in the first place, nevermind that VCs wouldn't have funded it if not for their pitch on how it could become a billion dollar company.
And since Sequoia? It is primarily the Zed team working full time on it, which costs money.