Warning: Death By Overfunding
Funding = Success, right? I wish it did. But entrepreneurial tracks are littered with carcasses of dead startups that were very well funded, some to the tune of hundreds of millions. As a case in point, watch this 2 minutes 31 second video: Death By Overfunding.
If you prefer to read instead of watching, read the Nasty Gal story here:
Death by Overfunding: Nasty Gal
And, here are more stories of entrepreneurs whose startups have died because of their addiction to venture capital.
Each started with a promising business.
Then each went overboard in their quest for hyper growth without paying attention to fundamentals.
Death by Overfunding: Glam Media
Death by Overfunding: Gilt Groupe
Death By Overfunding: What Led to the Sinking of Shyp?
Death by Overfunding: Jawbone Attempts Another Pivot
Death by Overfunding: Beepi Towed Off-Market
Death by Overfunding: One Kings Lane
Death by Overfunding: Powa Technologies
Collectively, these companies have flushed billions down the drain, and then gone out of business.
It’s painful to watch.
Looking For Some Hands-On Advice?
For entrepreneurs who want to discuss their specific businesses with me, I’m very happy to assess your situation during my free online 1Mby1M Roundtables, held almost every week. If you are visiting the San Francisco Bay Area, come meet me at an upcoming Rendezvous meetup.
