Greg Head who is very influential in the Phoenix ecosystem and with startups overall put together a great post on why startups should not all get funded.
Below is a quote from his commentary:
What’s not good is the expectation from the growing crowd of new startup founders that you simply find an idea, build an early product, get a little revenue and then just “get funding” to grow it into a big business. I hear from frustrated entrepreneurs every week who rail against the difficulty of raising money and how “investors just don’t get it” (both of which can be true).
This should be a lot easier, they tell me. In some cases they are right, but in general, I disagree.
This may not be easy to hear, but the reality is this: For the most part, the startups that aren’t getting funding shouldn’t get funded. And many that get funding shouldn’t have been funded. There are exceptions on either side, but overall I think our messy and imperfect capitalist process is doing a decent job of betting on the potential winners.