One of my favorite bad examples of this is Supabase. They played into the whole open source Firebase bandwagon and while their code is available, the ethos of open source is completely lost, so much so that even now local development and self hosting is a pain.
In terms of good examples, Andrew Sherman who does Drizzle ORM is a good example of this. Here is one of his tweets talking about not taking VC money: https://x.com/andrii_sherman/status/1775954643022971044
> I quit my job to start working on Drizzle full-time. It's still not VC-backed(and will never be!), and we are still doing everything thanks to our great sponsors and our first successful B2B integrations.
So it can work but honestly the best open source projects start off when you are getting paid a salary and you work on the project because you are passionate and love working on it.