Companies rely on luck to create winning products when they employ the ideas-first approach to innovation. The chance of randomly devising a solution that addresses the customer’s unmet needs — when the needs are unknown — is near zero.
As a corollary, if your business is seasonal, try avoid fundraising during lulls. VCs are smart enough to appreciate macro factors, but there is something in the lizard brain that makes closing a deal against the backdrop of a couple of months of flat revenue (even if following an explosive quarter), that seems to turn investors off.
We don’t actually have anyone who lives in San Francisco, but now everyone is being paid as though they did. Whatever an employee pockets in the difference in cost of living between where they are and the sky-high prices in San Francisco is theirs to keep.