Maybe I just don't get the Silicon Valley culture, or perhaps I'm missing something fundamental, but let me just get this straight:
1. Startup has no revenue whatsoever, but ostensibly have good product. They go pitch to investors and get rejected, likely because they have no revenue.
2. They hack around for 1 (!) weekend and get their MRR to $500. Five hundred bucks. They now go back to investors and say: hey look, we now have revenue (peanuts really), can we get funding please?
In what world would those $500 be expected to make a difference? How is that a proof of anything? I expect even really inept startups can somehow pull together $500 revenue from friends and family.
I suppose I just don't get how $500 in revenue could be seriously considered the tipping point between rejection to acceptance for investment?
To my layman reasoning, this is incredibly naive, but I'd like to be proven wrong.
1. Startup has no revenue whatsoever, but ostensibly have good product. They go pitch to investors and get rejected, likely because they have no revenue.
2. They hack around for 1 (!) weekend and get their MRR to $500. Five hundred bucks. They now go back to investors and say: hey look, we now have revenue (peanuts really), can we get funding please?
In what world would those $500 be expected to make a difference? How is that a proof of anything? I expect even really inept startups can somehow pull together $500 revenue from friends and family.
I suppose I just don't get how $500 in revenue could be seriously considered the tipping point between rejection to acceptance for investment?
To my layman reasoning, this is incredibly naive, but I'd like to be proven wrong.