this take feels wrong to me, nothing inherently differentiates a crypto startup from a regular startup in terms of needing capital

is the argument that the rails for permissionless capital formation are easier in crypto? feels irrelevant

yes the rails for permissionless (aka public) capital formation should be open and accessible at later growth stages

Permissionless rails don't feel irrelevant imo. That's the foundation of crypto in the first place.

Cuts out the middle man. Instead of organizing into VC funds just to redistribute capital back out to various projects, capital can flow to each project straight from the source (incredibly painful without crypto).

i believe argument is also that successful decentralised value creation usually necessitates some sort of participatory & revenue generating incentivization mechanism (as seen in most L1s) - 

imo - new 'business models' for crypto startups are needed that can ensure  profitable scalability from the get go