Currently raising funds for a startup in a small but growing industry. The entire industry is relatively new and companies like ours are all discovering new revenue streams and ways to monetize their product’s. Very few companies globally in our industry are profitable, many are burning cash, and very few like us are making revenue, close to breaking even at the end of the year.
During our fund raise, we have come across many potential investors, all obsessed with how fast and how large we can scale. I completely understand these investors are looking for a significant return on their investment in a short period of time, but it seems like building a solid core, a sustainable model and organic growth is unfavorable for most, and their obsession is with how fast we can scale. Again I completely understand why, but looking at the statistic that 90% of startups fail, I would think promising investors to spend their money wisely, become sustainable, keep salaries low, and growing organically, all while still working towards the big sale would be favorable.
Is my thinking skewed? Would love some input. Thanks
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