It's a simplification, like any analogy. It's also a version of Brooks' Law[1], in case that wasn't apparent to all.
Businesses can certainly scale with more people. But this isn't a business, and to loosely paraphrase Andy Bechtolsheim at startup school this year, throwing money at problems is lazy, you should be throwing minds at problems. $41M in the bank will almost certainly be harmful at this stage of Color's development.
Also, even $41M is not going to (noticeably) speed up the surrounding ecosystem.
Businesses can certainly scale with more people. But this isn't a business, and to loosely paraphrase Andy Bechtolsheim at startup school this year, throwing money at problems is lazy, you should be throwing minds at problems. $41M in the bank will almost certainly be harmful at this stage of Color's development.
Also, even $41M is not going to (noticeably) speed up the surrounding ecosystem.
[1]http://en.wikipedia.org/wiki/Brookss_law