I never understood, what is to prevent a startup from raising a VC seed round, then a series A round, and then simply grow at its own pace?
Is there something in the SAFE note or whatever, that says the startup MUST fail fast, go big or go home? It can grow methodically, can't it?
The closest explanation I've ever heard is that VCs do "signaling" in future rounds... but listen, if you have a few extra million dollars to grow your startup, and you still can't become profitable after that, then something's wrong with yoru business acumen, in my opinion. Anyone with a few million dollars is able to hire people and create a profitable product. What happens if a company pivots to being profitable "too early", what can the VCs do?
Is there something in the SAFE note or whatever, that says the startup MUST fail fast, go big or go home? It can grow methodically, can't it?
The closest explanation I've ever heard is that VCs do "signaling" in future rounds... but listen, if you have a few extra million dollars to grow your startup, and you still can't become profitable after that, then something's wrong with yoru business acumen, in my opinion. Anyone with a few million dollars is able to hire people and create a profitable product. What happens if a company pivots to being profitable "too early", what can the VCs do?