4 problems venture capital cant solve
- But the business isn’t making money on a contribution margin basis, only the variable costs of a good or service.Their assumption — likely incorrect — might be that new money for sales and marketing will solve the company’s problems.
- Add inflation, corporate cost-cutting and market volatility, and it’s understandable why many investors and founders are skittish.For an entrepreneur looking to raise money, the current landscape could prove difficult.
- But the truth is, I see founders every day looking for money for the wrong reasons.
- Without a clear picture of what is fueling losses, venture capital will only accelerate your demise.
- Most of the time, what stands between a company and its ability to achieve scale is not a lack of money.It’s better to ask: Do we have hustle problems?
- Is my business model fundamentally flawed?More money won’t solve these issues.
As the technology industry retrenches and venture capital firms tighten their standards, savvy founders should consider this counterintuitive question Even if my vision is compelling enough to secur [+2535 chars]