the first seems like maybe it wasn't a good investment at the outset?
I did an analysis of the dead startups I invested in the past 5 years and the two most common causes are:
1/ People didn’t want X (not a problem or not good enough solution)
2/ People wanted it but weren’t willing to pay Y (low gross margin)
Both totally solvable before 
-
-
-
Yeah it happens a lot. You have a thesis and the thesis is disproven by data.
-
When it's blue ocean, the hypothesis won't have adequate data, until there is a strategic inflection point that provides it, that's why I also tell entrepreneurs timing is everything, just because you can raise, doesn't always mean you should.
- 1 more reply
New conversation -
-
-
Seems like the main takeaway is: avoid investing in dead startups!
-
Major
alert - 1 more reply
New conversation -
-
-
Founders are not critical enough on this. Upon being made aware, too often they just go on ahead once they get the answer they want elsewhere. Confirmation bias FTL
-
(I say this as a founder who has done this
) - 1 more reply
New conversation -
-
Talk to potential customers long before you build solves thus issue rapidly. Or build a landing page, throw $500 in targeted ads at it and you'll know. There's no excuse for building a product that doesn't solve a problem today.
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
How do you solve #2 prior to launch? Setting pricing on perceived value is something that happens when you're in market and trying different options
-
U just try stuff and keep pushing up until the market says: ‘nope’. If ppl want what ur selling that barrier tends to be higher than founders expect. If ppl don’t want what ur selling than they prolly still don’t want it even if it’s cheap. Best to just experiment w it
-
100%
End of conversation
New conversation -
-
-
What is some general advice for fixing problem 2?
-
Either find a leadpool willing to pay X or change your price to what the market is willing to pay. If that makes ur margins too low than figure out how to make them better or just move on to a bttr biz idea. Preferably before u become too attached.
-
Yeah, or adopt an advertising model (similar to Twitter, FB, SnapChat, etc).
-
Yeah if ur users don’t wanna pay you, but they do love the service you could try getting someone else to pay. Problem is that that’s much, MUCH harder. You need huge numbers to make that work. An easier solution to #2 would be to turn it into a lead magnet for another paid thing
End of conversation
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.