Startups 3.0, The Lean Startup, and business angels…

Funding Startups (& other impossibilities)

OK, as with nearly all blog posts, the following is an outrageously reductionist simplification. But for all that, it remains a genuine and honestly held point of view that might just change the way you look at things…

Essentially, I believe that the modern financing history of “startups” divides into three overlapping generations or waves:-

  • “Startups 1.0” were bank-funded, back in the days when banks had money to lend.
  • “Startups 2.0” were angel-funded, back in the days when angels had both wealth and liquidity.
  • “Startups 3.0” are self-funded, trying hard to move to customer-funded at high velocity.

Right now, I think that most startups are stuck in a limbo between 2.0 and 3.0 – we’re smart enough to see lots of practical problems with angel funding, but not self-confidently ambitious enough to honestly believe that we can bootstrap what we do from basically nothing all the way to a billion dollar company without angels’ alleged assistance. My…

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