Ask YC: startup or traditional work experience?

If a founder works on his company for a year, but can't seem to make it work, do future hiring managers see that time spent as a negative (couldn't find a way to make the company work, why would we hire them) or a positive (imagine all the lessons and skills they have developed in that year)?

Would that year in the startup put you ahead of the pack, or behind it, since you would essentially have one less year of traditional work experience.