Is Excess Money killing the Start-Ups?
Ever wondered what happens when just one extra atom of Oxygen (O) is added to the life giving gas, Oxygen (O2)? It turns into the toxic element Ozone (O3) There’s a fallacy that the only way start-ups can fail is by running out of money. What’s less often discussed are the downsides of raising too much money and the circumstances of excess money heading the start-up towards counter developmental purposes. Funding under the wrong circumstances can often land the start-up in a position where good money is chasing bad money. Check out the latest fundraising events in Indian Startup ecology to understand the trend. Most of the entrepreneurs are of the opinion that funding is the solution to all the problems plaguing their start-up, and dive into the money hunt game. But seldom do they identify if that money is masking the real issues. Diamonds are only made under pressure. The essence of the start-up may be lost when there’s too much money at hand. I...