It's OK to have your eggs in one basket as long as you control what happens to that basket. The problem with the Silicon Valley financing model is that you lose control after the first investment round.
Quotes about Silicon valley
Source: Entrepreneur of the Year: Elon Musk: http://www.inc.com/magazine/20071201/entrepreneur-of-the-year-elon-musk.html
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Silicon Valley, “the largest legal creation of wealth in history,” was built largely by unprofessional amateurs using math, sand, and the institutions of freedom. The Soviet Union had the greatest mathematicians on earth, and plenty of sand, but without the institutions of freedom their brilliant mathematicians were not empowered to create
those devices that are changing the world.
Source: The Flow Book: The Flow Opportunity: The Creative Powers of a Free Civilization
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