The Startup Velocity Question - The Human Element

I’m publishing this series to discuss a topic that I follow closely - cloud stocks, trends, strategy, acquisitions, and more. Please subscribe to my Cloud Stock Analysis series and never miss an article. I like fundamentals-focused business building, and teach the principles of fundamentals-focused business building at 1Mby1M. Learn what to expect from 1Mby1M.

I am acutely aware of how painful it is to have raised venture capital and then not hitting rocket speed.

The pressure is enormous, the kind that first time founders have no prior experience of.

The media hype makes you believe that fundraising is the end game.

No, fundraising is only the beginning.

You have to deliver on precise metrics.

Velocity takes the highest priority.

And when velocity falters, the stress on the entrepreneur is inhuman.

From being a hero for raising capital, you are overnight reduced to feeling like a failure.

The possibility of an inglorious shutdown looms large, taking away sleep, making relationships rocky and unpleasant.

My one piece of guidance at the face of such turbulence is to seek the Truth.

Do not deceive yourselves.

Try to diagnose the problem with the business truthfully.

Do not take the market’s reluctance personally. Do not let it destroy your personal self-esteem.

If you choose to work with an outside expert to get a diagnosis, be open to candor. Do not shoot the messenger. Keep your ego in check.

Listen. Learn. Course correct.

If you are a first-time entrepreneur going through such an experience, reach out to experienced mentors for help.

Strategy change often requires organizational changes. They can be extremely complex in a high pressure setting. Lots of pointing fingers, lots of defensive behavior boils in these hot waters.

To lead through all this is not for the faint of heart.

But it can be a tremendous learning experience.

Good luck!

In our work with 1Mby1M, we have legitimized Bootstrapped Entrepreneurship, raising its profile and importance in the startup world. Nonetheless, many startups have sought financing and many VCs have funded them. As of December 2023, 54,000 venture-funded startups exist in the United States alone. Globally, the number is likely to be higher.

The vast majority of these funded ventures are not gaining velocity.

In this series, we are discussing the nuances of the velocity question.

If your startup is facing Positioning challenges and you need help, you can explore Velocity Consulting with me.

You can read the entire series, The Startup Velocity Question, here.

Photo by Mubariz Mehdizadeh on Unsplash