Lack of funds is actually a problem (Funds mismanagement is the root) . Not all those ICOs peaking in 2017 exit-scammed. Most just didn't manage their funds right. They got caught up in the whole ico-frenzy and used up funds raised to the extent that there's no money to psy the actual platform developers (I'm an aspiring developer so I know this and if developers aren't paid, they leave) and then everything falls apart. This is a major reason why most startups failed - Crypto funded (ICO) or traditional businesses/startups.
True, and before they know it, funds are dwindling that's why are early as May 2018 there are reports that projects themselves has to dump their ETH in order for the project to survived. And this is one of the reasons why ETH suddenly went on a downward spiral. I guess, no one really anticipated the long bearish trend. But we can't blame them, there was no ICO prior and most of them born during the last bullish run so no one really knows how to react or at least long at the long term.
And I think IEO startups are beginning to follow same part and It's not helping because there are legit/serious projects that can bring new stuffs to the table but no way to raise funds as the ico bubble has bursted and IEO trend seems to be coming to an end.
It's going to be cyclical I guess, if those IEO projects are not careful with their funds then they will suffer the same fate as their predecessors.