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You switch cause and effect, all of that is the other way around. Startups give frequent investor updates if things go well. Startups are alive longer if thin
by Lionga 2y ago
You switch cause and effect, all of that is the other way around.
Startups give frequent investor updates if things go well.
Startups are alive longer if things go well.
Things going well is the cause, not the other way around.
- jedberg 2y agoI don't think I have switched them. I get plenty of negative investor updates. But those updates also include solutions and asks for help. Especially when it is a company that regularly sends an update on the same day every month. Those aren't always rosy.
- nostrademons 2y agoYou get negative but fixable investor updates. When you have unfixable business problems (which are usually along the lines of "Nobody wants our product", "Our founding team doesn't care anymore", "There is no reason for our company to exist", or "We can't possibly make the economics work"), then those are the startups that tend to go dark.
- aprilthird2021 2y agoBut those, can be fixed if addressed early enough by a pivot, a shakeup in leadership, business model change, etc.
- themanmaran 2y agoI think the only truly unfixable problem here is "Our founding team doesn't care anymore". Plenty of companies have made successful pivots, even later stage. It gets harder and harder the larger you grow of course, but it's always possible. Most startup deaths come from a lack of motivation. Everything else is a side effect of that.
- jedberg 2y agoWell yes, if they are sending me investor updates once a month and then stop, that's bad. But usually before they stop, the updates at least have a list of problems, and if there is a fix we can work on it together I can help them find someone who can. The point is, if you hold yourself accountable to your investors for an update once a month, you're also holding yourself accountable to yourself and your team to track those things and adjust.