

Building A Company In Brazil; An American Entrepreneur’s Perspective - cwan
http://techcrunch.com/2011/12/18/building-a-company-in-brazil-an-american-entrepreneurs-perspective/

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rcamera
This following quote is the only part that actually matters in this article.
Because of the scarcity of capital, startups have to become profitable asap,
and some even build non-core products or services (such as consultancy to
large firms) just so they can struggle a couple more months, diverting
resources from the main product/service:

"Because of the lack of a robust early financing market, several accomplished
early stage entrepreneurs, with companies that are producing real revenue-
something Silicon Valley entrepreneurs perpetually promise is on the horizon
(wink, wink)- have had to go one by one knocking on rich peoples’ doors
pleading for money. They have had to convince the country’s often very
traditional elite that there is a huge opportunity in the web/mobile and that
they should invest. As a consequence, all too often, Brazilian entrepreneurs
have had to resort to raising small rounds at low valuations and have had to
sell their companies before they should have."

