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 when [Sarah] doesn’t have great references from previous jobs or companies. It’s when a big competitor is expected to get to market...
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