The Silicon Review - Best Business Review Magazine 10 Best Startups of the Year 2019 Asia | Page 32

Widening Valley of Death for Startups:
B
uilding up a company in
the initial stages is always a
major task. “It is never easy
to take the first step,” some say and
few others say that the beginning is
easy but later comes the problems.
But in general, it all depends on
what business you are in or what
the startup is based on. Keeping
that in mind the process begins
with the right investment since
no business runs without money.
It is said that there will be an
abundance of capital at two ends of
a startup in its spectrum. In today’s
generation, there is far more capital
chasing fewer quality companies.
Very few breakouts of companies
followed by a fear of missing
out in the market are always on
everyone’s mind. It is because
many feel it is not easy to raise
growth rounds with the revenue
growth. Also, many feel it will be
hard to scale since creating a great
attraction toward one’s business
is difficult. Eventually creates false
realities that lead to the rise of
big rounds at a high price by the
founders. This move should only be
done if there is an over-abundance
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JANUARY 2019
of capital. All in all, there are always
factors such as capital scarcity,
underpinnings of revenue, growth
and economic scaling. All of these
fears can be solved through the
following solutions. the role? All of these factors need to
be considered since it is a startup
we are talking about.
It is wrong to expect the founding
team will build and sell what the
company is offering. Why are the
employees hired? It is a huge team
effort and only if everyone is at
equilibrium it is possible to reach
the bigger vision. It is up to the
early founding team or the major
decision makers to recruit the
right candidates who can build
the existing products and services,
leverage unique tools to satisfy the
unmet need and be there when the
company needs them the most. Keep in mind, capital does not
always grow business. There is a
misleading metaphor - “Pouring
fuel on the fire”, which is often
taken in a wrong way and many
end up going down the wrong
path. Many of the business models
we see nowadays or the market
itself is simply not native to the
much-sought-after venture growth
profile. This is the reason why
most later-stage startups fail after
raising large amounts of capital.
Almost all markets are facilitating
businesses that have a high DIS-
economies. Eventually implying
to the dwindling margins and as
a result, end up serving just the
locals or small-scale customers.
Remember technology alone
cannot consolidate your business,
you need many other factors.
The Right Candidates
Experience is certainly something
every single company seeks, but
something more to consider than
that is the heart of the candidate. Is
the candidate ready to learn? Will
he or she fit the company or can the
company mould the candidate to fit
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