
Why Funding can Kill Your Startup Fast – Emerging Market - wexcely
https://techpoint.ng/2016/08/17/funding-can-kill-business-faster/
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pascal1usa
Did you really say a good product will sell itself? Generally this is not
true, especially for enterprise solutions. But, I'm happy to be proven false
if you can provide examples

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yannyu
It's unfortunate he used those exact words, but you're also leaving out the
greater context: "A good product will sell itself without spending the
billions on marketing. It’s so amazing that a startup that has not even spent
₦100,000 on marketing came for an investors meeting and was asking for ₦100
million to be spent on marketing for a 4-month duration."

His point is referring to these startups coming in asking for huge amounts of
money without having spent even a small amount already. It doesn't make sense
for an investor to put in $10 million if you haven't even put in $10 thousand.

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pejrich
> It doesn't make sense for an investor to put in $10 million if you haven't
> even put in $10 thousand.

That's not always the case, and it depends on the situation. If a startup
founder is working for no salary and focusing fulltime on the startup, then
money might be better in their pocket, than in the company. $10k could by the
founder 6months working at the company. Sweat equity and opportunity cost are
also important to consider. Just because a founder hasn't put up cash, doesn't
mean they aren't also committed and taking a risk.

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mrits
"Why will an investor invest in you when you have not even made 1 sale?"

Well, to get a great deal for starters. Once you do have some sales you are
going to have investors lining up at the door.

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chrishacken
We have a lot of sales and we don't have investors lining up at the door.

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eloisant
Maybe not, but if you have good numbers you'll have a good valuation and any
investor who comes in will need to put more money on the table for the same
share.

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wexcely
Good numbers gives good valuation. My theory is run after your
clients/customers and investor will run after you

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anotheryou
misleading or wrong title...

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wexcely
Really? Why is it misleading? I think you should read the article before
commenting, it's what we're facing in Nigeria/Africa here

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icebraining
The original title is "can kill", whereas you posted "will kill" on HN.

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wexcely
Oh I see, my bad. Thanks for pointing that out.

