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I might just be being contrarian, but it sounds a little as if it's the investors that dodged a bullet. As I understand it, there's plenty of ups and downs in
by wbillingsley 11y ago
I might just be being contrarian, but it sounds a little as if it's the investors that dodged a bullet.
As I understand it, there's plenty of ups and downs in a new venture, especially e-Health where you're somewhat at the whim of government (most countries' health systems are highly government regulated) and there are already plenty of past-failures, even one by Google. But surely the investors would already have been aware of that, and had decided to take a risk, because e-Health is also inevitably going to be a very big market eventually (just who knows when the ducks will finally start to line up), and if they want to play in that space they have to try.
But it seems this entrepreneur had last-minute cold feet at even the thought of the hurdles they will encounter.
It's that question -- whether this team has enough perseverance to stand a chance in that stormy sea -- that seems to have been answered at the last minute. The investors already knew the chances would be low.
- 7Figures2Commas 11y agoThe investors dodged a bullet not because this founder lacked the mental fortitude to face challenges but because he did their due diligence for them and was honest enough to pull out of the financing once he discovered his concept was likely not viable. The market for seed-stage investments is very frothy today. Lots of investors are spraying and praying, and as a result often lack domain expertise in the areas in which they're investing. Founder pedigree and social proof weigh heavily in what seed stage investors consider "due diligence."