The startup failure rate is very high partially because so many of the ideas are just bad ideas. You have to get through a lot of garbage to find some gems.
Discussion
Strong majority of startups I’ve come across were perfect examples of “misallocation of capital”, typical FIAT maxi shit.
On the other hand, Czech republic is know for really decent attempts. But most of them end up as “exit strategy” - they are sold for few dozens millions of dollars and you never hear about them again. Such a shame.
I'm not part of the VC scene in any way, but from what I've heard via the grapevine, VC due diligence can be non-existent. Some just pile in because someone else throws their money at a thing.
Yes, exactly.
I am not sure about that. A successful company doesn't just imply a good idea. Management can be the difference between success and failure. That is why it is essential to have good mentors, willing to support and guide you in what you have less or no experience in.
Never said it did (imply a good idea).
And there are times when you have to actually try an idea to figure out that it was a bad idea.
Probably yes. Some weird but intriguing behavior is not always obvious.
This is unfortunately the case for a lot of small businesses. Forget capital allocators: It saddens me to think some of these folks did not have anyone in their life to help them pump the brakes before putting their life savings into something that everyone else can see was doomed to fail.
Yep, even worse for small businesses due to upfront investment. At least with software you can bootstrap that and sometimes fail pretty quickly to try again.
No one can change the regulation, countless laws and taxes we’ve got, banks and finance.
The ideas that would elevate us and change the world are pretty simple, bitcoin was founded because of that too
But no one will allow you to do that because it’ll make a lot of people loose their monopolies and power
I think we need to support bootstrappers and give them more visibility and credit vs all these VC backed companies
This week there is, for example, a popular app update for Amie and it gets lots of attention on Twitter
It got $7 million for a calendar app SAAS lol.
Issue also that VCs in majority want money out of you more than anything else so we end up seeing only success in how much startups earns and it’s often something B2B where a bigger corporation pays smaller company because they’ve got insane money in their accounts in the first place
Instead of VCs it could be government or a community/fund who would help you financially to build your company and grow it
With a community you’ll already have users, feedback loops etc. (similar to nouns)
Government/community are more interested in making it better for the people rather than do a good business
The best idea doesn’t always win, and I can think of a few start ups that I feel are bad ideas but extremely popular. Start up success is a combination of things and in some ways arbitrary.