Some entrepreneurs think that (more) money will solve all their company’s problems. It won’t. Like a teenager with a million dollar allowance and an identity crisis, a startup with too much capital and no product-market fit will become capable of making larger mistakes.
Biggie Smalls said it best: “Mo Money, Mo Problems.”
As an investor, I root for startups. It pains me to see great teams and ideas collapse under the pressure that sometimes follows fundraising. If you’ve raised money and you’re not sure what comes next, that’s fine – I don’t always know either. However, I do know four things you absolutely should not do: