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Most startups have a financial model before they start doing business, because most startups aren't in tech. Tech is the only market where you have the luxury
by gamblor956 6y ago
Most startups have a financial model before they start doing business, because most startups aren't in tech.
Tech is the only market where you have the luxury to not know what your revenue model is, or even what your product is, for months or years after you have "launched."
Given the high rate of failure with tech startups, more financial modeling in the early stages would probably have resulted in more meaningful attempts at creating value, rather than the constant copycatting you currently see.
- marcosdumay 6y agoAs long as you don't mix the meaning of "tech" with "informatics", yes, that seems correct. When you do stuff that nobody ever tried you both get some leeway on experimenting how to interact with the market and is unable to predict how the market will react to it. If you are doing the same thing everybody does, you are expected to know beforehand what is your product. That is true whether you do those things in a computer or not. But you are pointing on some confusion of investors that think they are getting into a tech company when the company is actually just a copy of something else. That may be widespread for all that I know (I still somewhat doubt it), but most product development does consist on copying nearly everything of another existing one, this does not make it any less tech.
- b20000 6y agotech investors are not interested in value, they are interested in disrupting what is already there and profiting from it.