There is a single leading cause to the failure of a startup. It is a cancer in the startup world and claims some major institutions among its victims. What I am talking about of course — is chasing lights.
But they are so pretty! Jo says his buddy Doug is a big VC guy, he’s good for a 7 figure round. All the startup team needs is a bulletproof investor deck. Jo even offers his assistance as a deck building pro. What a great guy! The excited founders love the prospect of a fat bank account, and they go into chase mode. This mode is characterized by fabricating numbers in well-formatted spreadsheets, endless slide revisions, and meeting choreography.
Chase mode can be directed at capital infusions, licensing deals, media partnerships, and enterprise contracts. They always take more effort than initially estimated, and always seem to be a good idea at the time. If landed, the deal would put more zeroes into the bank account, and that is winning — right?
There is a European legend of lights in dark swamps. The will-o’-the-wisp lured travelers off the path with beautiful lights. It led them deeper into the bog, and to their demise…
Chasing lights leads founders astray from the path of success for any business — adding value. Adding value is building a product or performing a service that benefits society. If a startup does not achieve a function that adds value, it will perish. It does not matter how many lights are caught, the further the founders stray into the bog and away from the path, the more they seal their fate.
Do not follow the lights. Stay strong on the path of adding value. The path leads to organic user adoption, reversing the investor game (they chase you), residual revenue, and recognition. It may feel thankless at times, numbers will not go up easily, and there will be many roadblocks in the way. However, stay resolute on the path — and it will lead to boundless success.
