Startup Warts and Investing
I was speaking recently with a seed investor I respect a great deal about some of the companies I invested in while I was at betaworks. A couple years since I first started, I’m now getting visibility into which companies might be very big. One thing I’ve noticed is that a couple of the companies that are growing quickly now had noticeable issues when I was first introduced. I’ll call these issues “startup warts.” Of course, all startups have warts, but these ones in particular were larger and more transparent than most.
What exactly is a startup wart?
A startup wart is when the founders can’t get visas to build the company here in the U.S. It’s when the founder is building a hardware company with no previous hardware manufacturing experience. It’s...