Here is a story in three parts:

I advised a startup (or at least I intended to) who had received some significant funding, and they were on track... until they were not.

   
It is a sad story that we have all heard. Startup receives funding. Startup is unsure of how to utilise said funding. Startup overspends on the wrong things. Startup fails.

What are the "wrong things" you ask?

• Creating a product or service that is a solution for a problem that does not exist (aka no ICP)
• Outsourcing for services you do not need yet
• Over-hiring
• Over-developing aspects that are not critical to a product
• Committing to expensive partnerships or licensing deals
• Ignoring testing, security, or compliance regulations
• Extravagant purchases (offices, perks, team gatherings) instead of reinvesting in the company

This startup’s CEO, let’s call him Chuck, did not over-hire.
Chuck did not try to add excessive features or cut corners.
He did not commit to any licensing deals.

But, Chuck did put the cart before the horse…

Check back tomorrow for Part II :)