13 Comments
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Dr. Michael Meneghini's avatar

Capital creates time, but it doesn’t create fundamentals. Strong businesses use funding to accelerate, not avoid reality.

Daniel Ionescu's avatar

A raise can make founders feel like they’ve already won the argument.

Customers may still be unconvinced, but the bank balance is suddenly very persuasive.

Dennis Berry's avatar

A raise can validate momentum, but it can also reduce urgency

Daniel Ionescu's avatar

The outside praise can do more damage than people admit.

You start trusting the room that funded you more than the people who still haven’t bought.

John Brewton's avatar

The discipline that got you funded is the same discipline that determines whether you deserved it.

Daniel Ionescu's avatar

And you have 18 months to prove it…

Cory Blumenfeld's avatar

i see a version of this all the time with hiring... founders finally have budget so they start solving problems with more people when the real issue was never headcount to begin with

Daniel Ionescu's avatar

You hire three people to fix a messy problem and suddenly you’ve got the same messy problem, three salaries and a manager needed to explain it all.

Melanie Goodman's avatar

There’s a useful tension here: capital can increase runway, but it can also reduce urgency, which is where operational issues sometimes stay unaddressed for longer than they should.

Daniel Ionescu's avatar

The team notices when hard decisions keep getting pushed too.

After a while, “urgent” just becomes another word everyone politely ignores.

John Hamel's avatar

I've seen founders assume that scaling is simply a matter of pressing harder on the gas pedal. They go out and find a lot more fuel, then dump it onto a small fire, only to watch it erupt into a massive fireball. When the flames finally die down, they're left with no fire at all. As you mention, discipline requires more than fuel, it requires a strong foundation and the ability to control the burn.

Daniel Ionescu's avatar

And once the money’s there, every half-decent idea starts getting treated like it deserves a team.

That’s how one bad call turns into twelve salaries and a very awkward board meeting.

John Hamel's avatar

Nicely put! Awkward might be a generous term.