November 21, 2019
There is a back story to the attempts to provide entrepreneurs a pool of common resources for startups.
“WeWork said on Thursday it is laying off around 2,400 employees globally, as the office-sharing company seeks to drastically cut costs and stabilize its business after it transformed from a Wall Street darling into a pariah in a matter of weeks.”
That back story is the huge hurdle startups face to make their business profitable as it grows. The hook to attract startups is the opportunity to meet and pursue funding they need. But often the initial funding requested can be as little as $1,000 to $1,500.
However, funders want to invest $25,000 or more. That creates a huge challenge for the startups to consider should they accelerate their startup plans beyond the need for a far smaller initial request.
Many startups concede to the larger funding threshold at that point.
I believe lower initial funding amounts should be granted if the startup’s business plan substantiates that request. In my experience as a partner in two startups, only large amounts were offered. My startups rejected those attempts.
Further, after my participation in my startups ended in 2015, I retired.
In the Fall of 2016, I voluntarily served as Chair of the Program in the “San Diego CyberTECH Entrepreneur In Residence Program”. I served as a volunteer in that position at the pleasure of Darin Andersen, CEO of CyberTECH until April 1, 2017.
During that time, I and several other Advisors worked with approximately 60 startup companies that entered into that CyberTECH Program.
My descriptions in this post are my opinions concerning Startups and some of their efforts to succeed.
No business is guaranteed success. It is a hard lesson to learn. It shouldn’t be made harder than necessary.