Traction ≠ A Good Investment

100 Words A Day (266)

I sometimes meet founders who think they are entitled to venture capital because their startup has traction. The mindset is “I did the hard part and built a business, just give me money”. Trust me, I get it. This was me for 7 years. But recently, I have reconsidered my view on this. On the path from $0 to $100M ARR, $100k ARR is effectively .1% of the way there. This is how VCs look at it. So when founders stress they should be funded because they are .1% closer to the promised land, they could come off as amateur.

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