I’ve learned that for some founders, investors are the customers. They do tons of informational interviews to find out what investors want, pitch that, build those relationships. Then, just like with customer relationships, if they like you enough they’ll follow what you do next.
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I’ve now met many founders who never really built relationships with customers, but the investors loved them and their ideas, and they just keep living off investor money, for this project and the next and the next. It’s a whole business model & industry in itself.
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And not a bad business to be in either! Isn’t Amazon an example? Aren’t they routinely not profitable from customers but absolutely loaded with investment cash?
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Replying to @sehurlburt
That is not a substantially accurate characterization of Amazon as a business. They have many profitable lines of business. They re-invest substantially all cash from them into newer lines of business. These work out very well as a portfolio strategy; AWS a particular standout.
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(AWS has a decent argument for being “the best software business ever built.”)
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