It seems that the problem with startups is that the people are great at coming up with ideas and putting them into practice, they’re just bad a successfully running a business.
Over the last five years, my firm Red Rocket Ventures has consulted or mentored more than 500 startups — nearly all of them suffering from the same problem. They are typically so focused on building their product, they don’t raise enough capital to cover essential sales and marketing activities that will allow them to better attract additional venture capital down the road. As a result, many startups run out of money soon after launch, stalling out before they reasonably had a fighting chance.
