Wednesday, October 7, 2009

Joe Hadzima @ MIT

Joe Hadzima visited us at Founder's journey on 09/30. One piece of wisdom he shared particularly intrigued me:

One reason companies fail is because they raise too much money too soon.

He explained that too much money encourages hiring mistakes - overstaffing with people with a specific skill set, which is not what is required for taking the eventual product to market. He also pointed out it causes unnecessary dilution, and distracts from the goal of selling to customers as quickly as the company can when a company is overly cushioned.

I had not thought about potential hiring mistakes as a fallout of too much money, so this was eye opening to me.

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