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 &
risks
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?
Thoughts?
#startups
Originally posted by Sheetal Bansal on LinkedIn
link: linkedin.com/in/sheetalbansal
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 &
risks
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?
Thoughts?
#startups
Originally posted by Sheetal Bansal on LinkedIn
link: linkedin.com/in/sheetalbansal