My friends at Massachusetts Technology Development Corportion www.MTDC.com recently sent me an item they saw on the Internet. It was a review of why two startups failed. One of the startups had $20 million Dollars in venture money and the other startup was without Venture Capital. The article is titled “Postmortems on two failed startups” written by Jeremy Liew and was on VATORNEWS.
To Quote the article
?Monitor110 recently shut down after raising $20m over three rounds. One of the co-founders wrote a portmortem of Monitor110, highlighting 7 mistakes that the company made:
1. The lack of a single, ?the buck stops here? leader until too late in the game
2. No separation between the technology organization and the product organization
3. Too much PR, too early
4. Too much money
5. Not close enough to the customer
6. Slow to adapt to market reality
7. Disagreement on strategy both within the Company and with the Board?
I think there are some valuable lessons here for all startups. Don?t be taking money for the sake of money. Have clear leadership. A ship with too many captains and as dangerous as a ship with a captain unable to take command. Slow to adapt to the market reality. I would take it one step farther. I don?t care what business you are in. The business you started in is not the business you end with. You can have the best laid plans, but business is a constantly changing landscape you must adapt too or fail. There are so many lessons in this quick write up. I wish I has time today to comment further. To read the rest of this article?
Posted by Michael Corey