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Founders need to avoid the VC trap. Stop raising money from investors that demand hockey stick growth. Find investors that expect reasonable growth and returns.
by seibelj 6y ago
Founders need to avoid the VC trap. Stop raising money from investors that demand hockey stick growth. Find investors that expect reasonable growth and returns. If an investor encourages every single one of their investments to be a 1000x return, expecting only 1 in 100 to be so, and kills any company the moment they realize they won’t fulfill the investment thesis, many companies do nothing but pivot until they run out of capital. Very few companies can accomplish such a high level of growth and most only do so through gray means (regulatory violations of UBER and Airbnb).