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If your KPIs suck and another potential investment's KPIs rule, whether due to timing or due to a better business plan, it's irrational to fund the one with shi
by apathy 10y ago
If your KPIs suck and another potential investment's KPIs rule, whether due to timing or due to a better business plan, it's irrational to fund the one with shitty KPIs.
This is especially true when (as demonstrated here) it can be anticipated that a drop or rise will be coming. Pretty basic stuff.
- nathan_f77 10y agoRight, but if you had amazing KPIs a few months ago, and there's a really good explanation for a seasonal drop in sales, then an investor shouldn't be too worried about that.
- majani 10y agoYou likely won't even get to meet him and explain since he's thrown your "shitty" application in the bin
- apathy 10y agoExactly! VCs typically get (maybe) 1 breakout hit and 1 steady chugger out of every 10 companies they fund. It doesn't make sense to fund companies that can't even understand cyclical demand as it impacts cash flow.