Maybe You Just Suck

What I’ve learned about the best, and the worst, start-up entrepreneurs. [This originally ran at here.] A lot has been written lately about the Series A crunch–the phenomenon of too many seed-stage companies chasing too few real investment possibilities. I know the data supports the thesis, but it also sounds a bit whiney to me. Maybe it’s an offshoot of the psychology of the millennial: Everyone gets a trophy and nobody loses the soccer game. Building a funding-worthy company is not an “everyone wins” proposition. It is a numbers game. That is why the great majority of companies will not get funded. The numbers look even worse in second- and third-tier communities, where the dearth of professional investors and active angel investors creates additional pressure. At times, other institutions attempt to step in to alleviate this pressure. Economic development organizations from city and state government entities are perfect bad examples. An artificial stimulus to the capital supply chain creates a false sense of success, is not perceived well by professional investors, and in general does not create good entrepreneurs. You see, a Darwinian winnowing is a healthy and vital part of the journey. In our start-up accelerator, we embrace this idea

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