Why Funding can Kill Your Startup Fast – Emerging Market | Hacker News Reader

Why Funding can Kill Your Startup Fast – Emerging Market

techpoint.ng

53 pointswexcely15 comments

Did you really say a good product will sell itself? Generally this is not true, especially for enterprise solutions. But, I'm happy to be proven false if you can provide examples

It's unfortunate he used those exact words, but you're also leaving out the greater context: "A good product will sell itself without spending the billions on marketing. It’s so amazing that a startup that has not even spent ₦100,000 on marketing came for an investors meeting and was asking for ₦100 million to be spent on marketing for a 4-month duration."

His point is referring to these startups coming in asking for huge amounts of money without having spent even a small amount already. It doesn't make sense for an investor to put in $10 million if you haven't even put in $10 thousand.

> It doesn't make sense for an investor to put in $10 million if you haven't even put in $10 thousand.

That's not always the case, and it depends on the situation. If a startup founder is working for no salary and focusing fulltime on the startup, then money might be better in their pocket, than in the company. $10k could by the founder 6months working at the company. Sweat equity and opportunity cost are also important to consider. Just because a founder hasn't put up cash, doesn't mean they aren't also committed and taking a risk.

It's hard for any product to sell itself, especially in a crowded Market. I believe good product is easier to sell.

"Why will an investor invest in you when you have not even made 1 sale?"

Well, to get a great deal for starters. Once you do have some sales you are going to have investors lining up at the door.

We have a lot of sales and we don't have investors lining up at the door.

Maybe not, but if you have good numbers you'll have a good valuation and any investor who comes in will need to put more money on the table for the same share.

Good numbers gives good valuation. My theory is run after your clients/customers and investor will run after you

misleading or wrong title...

Really? Why is it misleading? I think you should read the article before commenting, it's what we're facing in Nigeria/Africa here

The original title is "can kill", whereas you posted "will kill" on HN.

Oh I see, my bad. Thanks for pointing that out.

Because can is not the same thing as will.

If something can happen, then there is only a chance. Certainty could be anywhere from 0.01% to 99.9%. If something will happen, then it is implied that it will occur with 100% certainty (provided all criteria are met).

Difference in title aside, the phrases do not mean the same thing.

Didn't notice the mix up between "can" and "will" in the titles and referred to to the "will".

My first thought, before reading the article was: "good: fail quickly". From reading the article I get: "Focus only on funding and marketing will kill your startup fast", but not, as the title implies, that there is a downside to being funded and using that money in a not too stupid way.

I blame the companies priorities if it's blowing all funding on a marketing campaign, while having a stagnant product. I assume without funding they would fall over the same wrong priorities, just not as fast.

Agreed. Without knowing anything about OP, I'm chalking it up as a language error and not knowing the implicit difference between can and will.

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