By Jason Trost
Most startups fail. Based on an analysis of 101 startup post-mortems by CB Insights, the top two reasons for failing are “market fit” and “running out of cash.” Logically, then, one of the best ways to optimize for success is to make sure you always have plenty of cash in the bank. That’s easier said than done when you are a scrappy two-person team working out of a flat in Kentish Town, London, and are fueled by caffeine and a simple desire to create something better. How do you find enough cash to see things through, and how much control do you cede in the interim to have a profitable product? It’s a tricky balance. In the end, if the product is viable, I believe you need less money than you think but more risk appetite than you ever envisaged.
As an American who’s set up a company in the U.K., I have dealt with investors on both sides of the Atlantic. There is a difference between investing styles in Silicon Valley versus Europe, and I was reminded of this when I moved to Los Angeles after a decade building a company overseas Click here to read entire article