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> "I've said it before but: don't invest in companies raising too little. They will fail." I presume that by 'they will fail', you mean that the company will f
by axod 16y ago
> "I've said it before but: don't invest in companies raising too little. They will fail."
I presume that by 'they will fail', you mean that the company will fail to make your required ROI as an investor, being acquired for millions?
At first read it seems like you're saying that unless you raise a ton of money you can't build a successful profitable business...
IMHO Newslabs failed because it was a terrible idea, not because of anything else.
- joshu 16y agoI mean that it will go out of business. Venture backed companies raise mone because they have have some significant buildout to complete before they can got market. Raise too little and the chances of reaching that point are too small. Additionally, if a startup cannot attract a certain amount of interest from investors, that is a big hint, too. Note that didn't say how much that minimum is. You are making assumptions. Bootstrapped businesses are great, too. But I am talking about a different kind of company. Anyway, yes, the news space is dismal and I avoid it. But I never needed to get to that part of the analysis.