This article has essential information for the healthcare entrepreneur who is planning a start-up. This is a topic we know well, and I believe that it applies especially to start-ups that plan to deliver clinical services: actually take care of patients. We are planning an extended piece on this topic. But for now study this, ponder, and choose wisely and carefully.
Here are some key excerpts that give you an overview:
Josh Haas, the co-founder of Bubble, a software-writing start-up, told the group that he and venture capitalists “were pretty much totally on different wavelengths” about the trajectory of his business.
By encouraging companies to expand too quickly, Mr. Denbow said, venture capital can make them “accelerate straight into the ground.
The end goal is to sell or go public, producing astonishing returns for early investors.
But for every unicorn, there are countless other start-ups that grew too fast, burned through investors’ money and died - possibly unnecessarily.
Now a counter movement, led by entrepreneurs who are jaded by the traditional playbook, is rejecting that model. While still a small part of the start-up community, these founders have become more vocal in the last year as they connect venture capitalists’ insatiable appetite for growth to the tech industry’s myriad crises.
“The V.C. path forces you into this binary outcome of acquisition or I.P.O., or pretty much bust..”
Read NYT: More Start-Ups Have an Unfamiliar Message for Venture Capitalists: Get Lost