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You should never have raised money in the first place. It sounds like this was not a business that was compatible with the goals and requirements of a venture-b
by rexreed 9y ago
You should never have raised money in the first place. It sounds like this was not a business that was compatible with the goals and requirements of a venture-backed business. The moment you accepted your first investment you were committed to that path. I agree - not all businesses are VC businesses, and many startup failures are a result of pursuing the wrong model for assuring continued operation and not a reflection (necessarily) of the "business".
- ryanwaggoner 9y agoAssuming significant investment, I would agree. On the other hand, they might have just raised $50k from an angel or two, which wouldn't really cause issues with bootstrapping... ...unless they used it to bump up burn rate to the point where another round or layoffs were inevitable, because profitability before out of runway was never feasible. That's what it looks like, but hard to tell from outside.