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In this landscape, capital is readily available, and the noise is growing — and it will continue to grow.Thus, it’s becoming even more essential to understand what it is about the anatomy of startups that makes them appealing to top investors, or, what is almost more valuable: Why they fail.
First and foremost, there’s a perception that the top reason startups fail is because they fail to raise funding, or don’t raise enough.
Startup Genome holds that, in fact, the main culprit is premature (or dysfunctional) scaling — in other words, a startup’s core operational categories (product, consumer team, finances, business model) are out of sync.
These interviews set out to answer three basic questions: Why do most startups fail, and what you can learn from these failures?
Of those that do succeed, what’s their secret sauce?
If Dixon is right that incumbents fail because of ineptitude or irrelevance, is the same true for startups?
Questions like this have led to the overwhelming interest in the Startup Genome Project, because, put simply, a group of entrepreneurs set out to answer these questions not by making guesses but by leveraging the actual data produced on/by early-stage startups.
But, in terms of how one should build a founding team, or how one should pursue business ideas to best serve innovation — change, inspiration, product-focus — all these just become buzzwords without context.
Illuminating this stuff was part of the motivation that led Mike Arrington to create Tech Crunch.
Once you are given an opportunity to present your business plan, remember that preparation is absolutely essential.
This feat is not a process of simply summarizing your business plan into a power point presentation and giving a presentation on it at the meeting.