⚡️ Do not mix up symptoms with root causes ⚡️
A lack of funding is not due to the unwillingness of the venture capital community, but the lack of belief in the start-up and thus the sum of all other problems!
Here are our top 3 picks of failure & learnings:
1) Failure in scaling
First paying customers are a good signal, but there is still a long way to go from a few customers to a real mass:
📈 Scaling does not mean 30% growth, but 100% YoY
📉 Cost structures increase faster than sales –> cash burn
🌍 Scaling is not synchronised (e.g. production to sales)
2) Lack of a clear USP 🚨
Many start-ups fall in love with their technology but forget the real customer value. Customer benefit & business model take too much of a back seat:
🚫 USP ≠ best technology
✅ USP = solving the biggest customer problem (paying customers)
And don’t forget: what you can already see on the market is the rear-view mirror of competition’s development. Leapfrog necessary!
3) Wrong mindset in the team🚨
3 nice founders who get along well? Not enough! It’s the determination to win against all odds:
💡 Passion without suffering is just enthusiasm
🧬 Mindset: Founder vs. employee DNA
At the eleventh hour – what to do business indicators turn south?
#1 Prio: Restore fundability
🔹 Reduce cash burn, extend runway
🔹 Reduce costs – no sacred cows (personnel, OPEX, CAPEX)
🔹 Create and communicate a clear, well thought-through plan
#2 Prio: Back to the roots – customer, customer, customer
🔹 USP is a Rubic Cube, technology is just one element
🔹 Customer value -> What problem am I really solving (efficiently)?
🔹 Permanently work on the biggest gaps in the offering (value!)
#3 Prio: Adjust management team
🔹 Toughest of all challenges for founders, management & investors!
🔹 Different phase -> different skills -> often difficult to admit
🔹 Recognise gaps and bring new skills on board early on
A baton change is the toughest challenge – but often the decisive step to success!
