Hannah: Premature scaling in cheap capital environments sabotages startup success
Josh Hannah · 20VC: Why The Best CEO's Are The Best Capital Allocators, How You Can Build A Business In A Space You Are Not Passionate About & When Is The Right Time To Put The Pedal To The Metal with Josh Hannah, General Partner @ Matrix Ventures · Oct 3, 2016 · at 14:25
Josh Hannah, General Partner at Matrix Partners, explains why founders should not deploy capital aggressively until they have fully figured out their business unit economics and product-market fit.
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“But I think a lot of entrepreneurs in these markets with relatively cheap capital have a tendency to be aggressive and put their foot on the gas, even when they haven't truly got their business figured out. And not only is that highly wasteful of resources, you might argue, well, those resources were cheap because it's been a capital has been freely available, but it actually, I think, sabotages your ability to be successful.”
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