Best of Bootstrapping: Death by Overfunding

Funding = Success, right? I wish it did. But entrepreneurial tracks are littered with carcasses of dead startups that were very well funded, some to the tune of hundreds of millions. As a case in point, watch this 2 minutes 31 second video: Death By Overfunding.

If you prefer to read instead of watching, read the Nasty Gal story here:

Death by Overfunding: Nasty Gal

And, here are more stories of entrepreneurs whose startups have died because of their addiction to venture capital.

Each started with a promising business.

Then each went overboard in their quest for hyper growth without paying attention to fundamentals.

Death by Overfunding: Glam Media

Death by Overfunding: Gilt Groupe

Death by Overfunding: Fab.com

Death By Overfunding: What Led to the Sinking of Shyp?

Death by Overfunding: Jawbone Attempts Another Pivot

Death by Overfunding: Beepi Towed Off-Market

Death by Overfunding: One Kings Lane

Death by Overfunding: Powa Technologies

Collectively, these companies have flushed billions down the drain, and then gone out of business.

It’s painful to watch.

This segment is a part in the series : Best of Bootstrapping