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I didn't read the article that closely, so please correct me if I'm wrong. Are finances not entirely dependent on the business plan and or idea? Applying a on
by bob_theslob646 9y ago
I didn't read the article that closely, so please correct me if I'm wrong.
Are finances not entirely dependent on the business plan and or idea?
Applying a one size fits all approach is extremely dangerous.
In my opinion, it is all dependent on which space you are in. Margins speak volumes.(They tell the story of most businesses) For software, the issue of money is not as important as it would be for a hardware business because it's much easier to scale.
The fact that "now" incubators are focusing on ideas that make financial sense may be one of the silliest things that I have ever heard. What that shows is that these venture capitalists/investors are starting to realize that "free money"( super low interest rate environment) will end eventually and it will be more crucial for these companies to be catious on how they spend their money.
Frankly, hearing this is scary, because they are somewhat admitting that the funded people lavishly and asked questions later.
It always makes me wonder how they benchmark vc's who invest in startups. Considering their returns are not public, it is hard to say.
What is even harder to realize and gauge is how they measure "successful investing."
So much of this is luck, especially in a crowded space/market.
Usually the best ideas(the paradigm shift) will always have access to infinite capital, but the ideas that may not be articulated fully, will be severely constrained until proven. That is not a bad thing, but may add some reality to what creating a company is actually about. Who knows whether is good or not, but in a few years we shall find out.