Investor Money vs Customer Money

Often startups celebrate fundraising rounds

But they forget that
Investor money is fundamentally a debt or a liability!
It comes with a responsibility & pressure from investors of delivering quick ROI
Founders who fail to confront this ironic reality hide behind an excuse of
accelerating growth to acquire market share
While, it might aid in accelerating the growth but cannot assure consistent &
sustainable growth

Customer money is a reward cum investment!
That brings in customer trust, loyalty & motivation to grow without fear
It gives founders much needed confidence & courage to take bold decisions &
It is a customer testimony for product acceptance & business growth
And act as a foundation for consistent & sustainable growth

No business on planet requires investors money to sustain or survive, but
definitely needs customer money for both

Investor money if spent with proper planning can surely help in generating value
for startups & customers, but is never a necessity

This is also another reasons why 95% of startups fail sooner

Most successful businesses built are bootstrapped, debt free & consumer centric!

Do you celebrate your startup fundraising?

What would you prefer between Investor vs Customer money?



Originally posted by Sheetal Bansal on LinkedIn