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paulg's profile
Paul Graham
Paul Graham
Paul Graham
Verified account
@paulg

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Paul GrahamVerified account

@paulg

paulgraham.com
Joined August 2010

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    Paul Graham‏Verified account @paulg Apr 23

    When a startup is raising a new round, unless they're default alive (or in the small number like Boom that inherently need multiple rounds to ship), I assume the real reason is not the amazing opportunity they've just discovered, but that they're running out of money.

    9:13 AM - 23 Apr 2021
    • 90 Retweets
    • 1,049 Likes
    • Leland Conn inexercan39 Rishank Pandey TAP ansaunessrads76 siworbungcom31 Waren Gonzaga Archit Anand Federico Fini
    44 replies 90 retweets 1,049 likes
      1. New conversation
      2. TechNexus Venture Collaborative‏Verified account @TechNexus Apr 23
        Replying to @paulg

        How often do you estimate that to be the case? 60% of the time? 80%?

        1 reply 0 retweets 1 like
      3. chris nunneley‏ @CeoNunneley Apr 23
        Replying to @TechNexus @paulg

        Just 3% of Seed-funded Startups make it to either the A round or to an exit, so really it's easy to "think badly" about any Startup and be 97% right, of course, the real problem is that VCs are so bad at judging what is worthy of Seed funding.

        0 replies 0 retweets 7 likes
      4. End of conversation
      1. New conversation
      2. Gopi Krishna  🇮🇳‏ @gopikl Apr 23
        Replying to @paulg

        Do you think too many startups wait too long before they look to raise ?

        1 reply 0 retweets 15 likes
      3. Paul Graham‏Verified account @paulg Apr 23
        Replying to @gopikl

        Sometimes, but the real problem is that they take too long to become profitable.

        10 replies 4 retweets 151 likes
      4. Show replies
      1. New conversation
      2. Pablo Eder‏ @pablothee Apr 23
        Replying to @paulg

        If a startup stops mid-fundraise would you assume it is because they've discovered they don't need to raise, or do you also assume they are failing? Seems like a lose/lose either way.

        1 reply 0 retweets 1 like
      3. Emmanuel Iyke‏ @TheMaes87105272 Apr 23
        Replying to @pablothee @paulg

        If they've discovered they don't need to raise it's probably because they've started or about to start turning a profit.. That isn't a lose is it?

        1 reply 0 retweets 0 likes
      4. Show replies
      1. Jesse Orndorff‏ @JesseOrndorff Apr 23
        Replying to @paulg

        Do you see startups under raising in that first round, then having to come back for more?

        0 replies 0 retweets 0 likes
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      1. David desJardins‏ @David_desJ Apr 23
        Replying to @paulg

        What if the firm is very successful but there is so much investor enthusiasm for them that they can raise a lot of money and do even more?

        0 replies 0 retweets 0 likes
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      1. HODL like a foolboss‏ @BadonkaDoge Apr 23
        Replying to @paulg

        Or they need new Aeron chairs.

        0 replies 0 retweets 0 likes
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      1. HEEEEEEEEEE  Ⓜ️‏ @HEEEEEEEEEEE_ Apr 23
        Replying to @paulg

        Surely there are many whose ability to scale simply correlates with access to capital.

        0 replies 0 retweets 0 likes
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