Your well-funded startup is already dead

Original author: Paul Smith
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As soon as a startup receives initial investments, more often than not I can already see how the team will be mired in problems in just a week.

Perhaps the founders finally deserved a vacation for the whole year, it doesn't matter. I already know that their startup will be bent.
Here’s what three of the four startups do right after receiving the initial investment:

• After several months of work 60 hours a week (and a little rest, as a rule) to start and show growth, so that investors believe that they are worth something, the founders begin to work from 9 to 5 five days a week - they relax even before the start of hard work;
• Since the money received provides an opportunity to solve life / work problems, their Facebook feed over the next few weeks and months begins to gradually fill with photos from weekend tours, parties and concerts;
• They almost always find time for the weekend or for a trip home to see relatives because they deserve it;
• A new apartment or house is one of the priorities, since now they can pay themselves a fairly high salary;
• Finally, there is the opportunity to pay compensation to a long-suffering partner - perhaps they will finally be able to plan a dream wedding, which has been talked about for months.

If this continues to continue for several weeks after receiving the investment, such startups are likely to die before they

can get Serie A funding. The point of the initial investment is to help your startup stay alive long enough to prove that customers and customers like what you do. No one will give you more money until you can prove that many people like what you do.

You have to do a lot more and prove a lot more after you received the money than before.
Initial investment is fuel that helps you do much more, move on and do it faster. Do you really believe that you will achieve more by working less - by concentrating less attention or being less devoted to your work than before you received the money?

The saying "work smarter, not harder" does not apply here. You can always solve problems, ensure efficiency and optimize processes - but small teams in this area face considerable difficulties, and therefore hard work cannot be replaced with anything.

It's not about working until you burn out. No investor wants a team to break up. But as a founder, you must understand that your startup is your priority for the next five years. This means that you will not have the opportunity to see family and friends often. This means that in some places the relationship will suffer. Take a day off if you feel you're starting to burn out. Go away, recharge. Leave for the weekend and disappear from the network - but when you return, you will be expected to work 12 hours a day with the same intensity and determination that you showed before receiving the money.

I imagine how the founders with whom I work or in whom I invested are indignant at reading this, asking myself if I mean them. It is likely that you, too, so let me put it all out for you and others who are in a similar situation: if you decide to switch to a normal work schedule after you have received the initial investment, if you treat your position of founder as a regular job , if you think that you can work less after you have received the money, I can confidently say that your startup is already dead, and all you do is waste time and money reaping what you could not sow.

To clarify the situation: I am not saying that you must sacrifice everything in life in order to have a chance of success. I say that if you as a founder will treat investments as a means to maintain a comfortable lifestyle, and if you hope to enjoy the same benefits, playing a corporate role without obligations beyond the scope of official duties, then you will fail.

Tell me the name of the founder of at least one startup, who succeeded, scoring on everything.
Either you want routine work from 9 to 5, or you want your startup to be successful.
Choose one thing. I guarantee you that you will not succeed in achieving both of these.




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