

Too Much Funding, Too Few Good Ideas - elilux

Anyone else think that there are a lot of ridiculous companies getting funding now? If you have anything to contribute contact me at info@techstartupbubble.com.
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andrewhillman
This is because investors invest in people rather than ideas. This means if an
entrepreneur has been funded before or is associated with a past funding they
will get funding regardless of the idea. This is why you are seeing
"ridiculous companies" getting funding. An amazing idea by an unknown
entrepreneur is worth less than a crappy idea from an entrepreneur who has
social proof (ie. is connected). To answer your question, yes, lots of
ridiculous companies are getting funded for the wrong reasons.

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abbasmehdi
This is an illusion that appears real to you. If you look at the biggest 5 web
companies during the first 6 months of their inception you would have said the
same thing. If you think you can judge success by hearing the idea then what
would you have said about farmville? Angry birds? Twitter (when we already had
Facebook status)? My point, in the beginning all companies seem like a
feature, and ideas are nothing and execution is everything.

