4 ms·
I don't think that a good company can grow from a massive investment that early. The VC fund wants the company to spend the money and grow value quickly, not si
by reilly3000 7y ago
I don't think that a good company can grow from a massive investment that early. The VC fund wants the company to spend the money and grow value quickly, not sit on it for years. That puts pressure on leadership to waste time and money worrying about building out offices, hiring top talent, contracting with big agencies, etc. None of that work has anything to do with building a quality product, growing a functional culture, or paying attention to what customers are saying. It suspends financial reality for both leadership and rank/file; instead it encourages waste.
Does closing a $250K contract matter? In a scrappy startup, that contract is a huge win. In an overfunded startup, its often considered a distraction.