There are so many startups out there raising money. I don't think this is a bad thing. It's a good thing. Entrepreneurship is in vogue. Innovators are innovating. Makers are making.
Sentiment: POSITIVE
There's nothing wrong with raising venture capital. Many lean startups are ambitious and are able to deploy large amounts of capital. What differentiates them is their disciplined approach to determining when to spend money: after the fundamental elements of the business model have been empirically validated.
Too many startups get in the habit of continually raising more and more money, which has the deleterious effect of both pushing out profitability and limiting your exit options. The less rounds of capital you need to raise, the more of your company you get to own.
Most startup entrepreneurs unnecessarily spend half their time and give up half their equity in search of funding from angel investors and venture capitalists. Tens of millions of dollars are available to them for free from partners who not only don't want their equity, they don't even want to be paid back.
One of the most important aspects that feed a thriving economy is successful businesses, so the more startups that take off, the better the financial picture is for everyone.
It's a great story for us whenever an entrepreneur makes a crazy amount of money and we get to tell the world about it. For the entrepreneur? Not so much. Hitherto unknown relatives, entrepreneurs seeking angel investments, money managers and supposed baby-mamas all come out of the woodwork with dollar signs in their eyes.
There's nothing wrong with a business that supports you and perhaps an extended family. But if you want to build a scalable startup, you need to be asking how you can you get enough customers/users/payers to build a business that can grow revenues past several $100M/year.
Fortunately, right now 'entrepreneurship' is one of the business world's biggest buzz words and so many young people in our country are looking up to this new generation of CEO's as their modern day rock stars. Whenever you have that effect, it makes the job of promoting entrepreneurship much easier.
The more entrepreneurs in the world that are getting their ideas financed, the more great companies there are going to be that we can all invest in.
I don't think a lot of people have been entrepreneurial about venture capital.
The problem with entrepreneurship is we are often working really hard producing high quality products that no-one wants. The creation of stuff is not valued.
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