There’s a Hole in That Road (10 Common Pitfalls for Startups)

There’s a great saying that describes going down a path that will only yield bad results: “There’s a hole in that road.” So, please, for the love of startups all over the world, avoid doing these common things that we at Promus Ventures see all the time!

• Quickly partner up with cofounders you don’t know well.
• Spend your time reading about how others did it rather than figuring out how you should do it.
• Worry about why your startup isn’t getting enough press (keep your head down and build, they will come).
• Go out of your way to tell investors about all the conversations you are having with this vc or that company.
• Demand out-of-market terms from investors that create havoc when you go to raise again (I don’t say this as a vc wanting better terms — you just don’t want to get too far ahead of yourself and walk the valuation tightrope).
• Think every other startup is raising silly amounts of cash and you have failed because you haven’t yet.
• Start building feature sets when your core product still hasn’t proven itself to be of worth to a group of early-adopters.
• Rush to accept anyone’s capital versus being patient in bringing on investors that are uniquely built for your company.
• Take short cuts by building what you think customers want versus taking the time to watch, listen and capture what they actually desire and do with your product.
• Wait for your product to be “better” before going to customers (you’ll be surprised the quality that customers will accept if your thesis solves a major pain point for them).

Amazing how hard it is to get out of the holes we fall into (me included), so best try to avoid them all together.

Recipients of this post are not to construe it as investment, legal, or tax advice, and it is not intended to provide the basis for any evaluation of an investment in any fund. Prospective investors should consult with their own legal, investment, tax, accounting, and other advisors to determine the potential benefits, burdens, and risks associated with making an investment in any fund.