I bet I've heard 100 startups explain why they failed to raise money, and I don't think I've heard one say that the reason was that their company seemed unpromising. And yet that is almost always the reason in the investors' minds.
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In fact, if you try this exercise in the middle of fundraising instead of waiting till the end, you may not fail after all.
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And if you can't explain why they're wrong, you've just gotten a bug report about your company that might be more valuable than the funding you were seeking.
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End of conversation
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That makes complete sense, but very few VCs are so forthcoming. Every startup I’ve either co-founded or worked with has craved honest and specific feedback in order to improve, but short of pulling teeth, is typically provided vague and generally unhelpful critiques.
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Does investors think of profitability ever or always think of doubling the valuation aka creating more value? Funded startups doesn't turn profitable mostly so fault lies in thinking and mindset at both ends.
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It’s all subjective. Time will tell whether companies and founders succeed or fail.
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It's a self fulfilling prophecy to a certain degree. If investors don't give the money necessary to establish and grow then the company is missing an important ingredient to success. Many types of businesses can bootstrap but there is a category of business that needs capital
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