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This is why it will be important as an investor to actually understand the business area that the startup is getting into. The problem with the dotcom bubble wa
by donaldc 16y ago
This is why it will be important as an investor to actually understand the business area that the startup is getting into. The problem with the dotcom bubble wasn't that there was pressure for investors to make a decision; the problem was that many investors put in their money without any clue as to even what the companies they were investing in actually did.
- mattmanser 16y agoI think you miss the point, there's a massive gap between understanding a market and successfully capturing it. Regardless of a VCs understanding of it, if the founders can't capitalize on it, but can talk the talk, it's gonna fail. Some successful sales actually prove a basic level of competence. It also shows the founders have a whole host of other skills, they can run a basic company, have some sort of idea how to market let alone gain traction, there really is a market for the product rather than vague projections, etc.