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Putting finance first means making solid businesses that solve peoples problem. If you don't capitalize on the innovations happening you can't help fund the nex
by ThomPete 9y ago
Putting finance first means making solid businesses that solve peoples problem. If you don't capitalize on the innovations happening you can't help fund the next innovation.
It's not that there shouldn't be innovation done but you can't build a market only on that.
- eldavido 9y agoThere's a middle ground here guys. If you're talking about 2-4 million seed rounds, sure, back a great team. But when you're talking about nine-figure equity raises, you probably need a tenable financial model. Another thing: software is high-margin. A lot of dumb VC is getting thrown into low-margin reinvention of relatively old business models (food delivery, hotels, livery), evaluated through software-like metrics. Maybe finances matter in low-margin scale businesses. It's just not as important in businesses based on pure software/design/IP-driven innovation.