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>I once saw one of my best friends fail his first startup. They had a kickass programming team, received investment and did a bunch of things wrong. >5) They d
by Permit 12y ago
>I once saw one of my best friends fail his first startup. They had a kickass programming team, received investment and did a bunch of things wrong.
>5) They didn't do any market testing and validation = wrong product market fit.
How does this happen? How do startups receive funding without doing some level of marketing testing and validation?
I ask because in Canada it seems extremely hard to get even angel funding (beyond family members) without demonstrable traction and growth. Is that not the case in the US?
- LukeFitzpatrick 12y agoThe investor they got, was actually doing something similar. Running a tutoring company that became quite profitable. Two of the guys working at the tutoring company got the idea to make this service, and sold the idea to their boss at the time. Raising money is hard work, these guys got lucky in that respect. I think they made the absolute rookie mistake, afraid to talk to as they might 'steal' their idea. They thought it was a sure thing. Especially when they received the investment.