There are (I have reason to believe) plenty of non-VC funded social media apps. Easy to make, and people think they’re going to be as big as Facebook. I think that type of app will still get made, as people who can’t sort out funding are people I don’t expect to know the law.
Only as much as the parent's argument was a non-sequitur argument.
Parent mentioned startups with lim -> 1 million users unable to comply. If they can't find VC money at the million user stage, then perhaps they didn't have a viable model in the first place.
(Plus, where all these I mentioned "VC funded" from the first user? If not, the argument holds for them too).