Building a startup and raising a child has similarity. You have to nurture both till the end. In the last few years’ crazy funding rounds, we rewrote all the definitions. A founder ended up becoming a celebrity rather than a builder. The incentives ended up being on Forbes or at some conferences.
As a result, companies ended up becoming disjointed. Building companies became fundraising announcements and secondary sales of shares and cash. There was no sight of revenue or customers.
It has changed now, and founders are working towards profitability. It might be a short phenomenon because of funding winter. But it’s other ugly sides of entrepreneurship. We are seeing accounts fraud, cashflow mismanagement, kickbacks, and all.
Due to a few bad apples, the overall ecosystem will have to go through this cleanup.
“Only when the tide goes out do you discover who’s been swimming naked.”
Warren Buffett