Where does the myth that “funding is the ultimate solution to business problems” originate, and what’s wrong with it?

Where does the myth that “funding is the ultimate solution to business problems” originate, and what’s wrong with it?

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This myth stems from startup culture where funding is glorified, but it overlooks operational fundamentals.

  • Cash Burn Issues: Many funded startups fail due to poor cash management.

  • False Sense of Security: Founders may delay tough decisions, thinking more money will solve problems.

  • Misaligned Incentives: Investor expectations may pressure startups into unsustainable strategies.

  • Funding ≠ Market Fit: Capital doesn’t fix product flaws or customer disconnect.

  • Bootstrapping Builds Discipline: Self-funded businesses often have leaner, more sustainable models.

While funding can accelerate growth, strategy, discipline, and product-market fit are non-negotiable.