What is the false assumption that funding is the biggest indicator of business potential?

What is the false assumption that funding is the biggest indicator of business potential?

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Many associate business potential with how much external funding it receives, but investment doesn’t guarantee performance.

Why the Myth Spreads:

  • Media celebrates funding announcements like milestones.

  • Startups equate valuation with validation.

Why It’s Dangerous:

  • Creates pressure to spend fast.

  • Misaligns priorities from sustainability to optics.

Truth:

  • Funding helps scale what already works—it doesn’t fix broken models.

  • Bootstrapped, profitable businesses are often more resilient and focused.