Will startups one day turn into venture capital businesses at a tipping point?

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Start-ups or companies that use their own income or existing cash flow to fund growth instead of relying on outside sources of capital are in a very different box than venture capital-backed startups. By the nature of the asset class, bootstrap startups prioritize revenue to sustain life, while venture capital-backed startups prioritize growth to retain investor support for future runway needs. Start-up companies follow a less exponential growth curve, while venture capital companies should be the exception.

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Enter the slump and both sides get a little more interesting. The built-in business discipline of early-stage startups can seem particularly resilient to downturns. how overfunded companies announce rounds of layoffs. As the venture becomes more and more interested in the stable foundations of a group of startups, isn’t it time for startups to bet big?

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Credit: techcrunch.com /

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