Once a startup starts fundraising beyond friends/family, the pressure to build scalable startups is there, constantly. The VC-funding system is built on that exponential returns.

A more matured entrepreneur with track record and professional network could pool resources together or even rely on their savings to build the startup before it hits profitability. A young entrepreneur often has to jump on the fundraising path in a much earlier stage of the startup.

Traditional bank financing is out of the question without a profitable business, 3 years of revenue, assets or proven income.

While there are other means of financing, it’s not yet made as much impact. Perhaps crowdfunding and other forms of crowd-financing will grow to make a bigger impact, esp for young entrepreneurs.