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7 mistakes that typically ‘kill’ a VC funded business

Alok Kejriwal, co-founder and CEO, Games2win.com, has written a blog post highlighting seven ‘deadly mistakes’ that typically ‘kill’ a VC funded startup’. According to Kejriwal the seven mistakes are spending investors’ money on advertising, hiring a high profile CEO, wasting time on signing ‘irrelevant’ agreements and contracts, making rapid changes in business plans, constant bickering among board members and the CEO, making bad business deals and decisions, and the typical VC thinking that letting 100 companies fail is ok as long as “we get 1 right”.

Alok Kejriwal, co-founder and CEO, Games2win.com, has written a blog post highlighting seven ‘deadly mistakes’ that typically ‘kill’ a VC funded startup’. According to Kejriwal the seven mistakes are spending investors’ money on advertising, hiring a high profile CEO, wasting time on signing ‘irrelevant’ agreements and contracts, making rapid changes in business plans, constant bickering among board members and the CEO, making bad business deals and decisions, and the typical VC thinking that letting 100 companies fail is ok as long as “we get 1 right”.

Enumerating one of his points, Alok Kejriwal writes, “In Mobile2win China, we had Chinese and German investors and an Indian CEO. They all hated each other! All of them spoke their native language in a common board meeting! One VC told me that he wished the company was dead because he hated the CEO! I politely reminded him that his money was at stake but he just shrugged his shoulders. We finally exited the investors, fired the CEO, and got really lucky with Disney buying us after the resurrection!”

Read the full post here

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10 thoughts on “7 mistakes that typically ‘kill’ a VC funded business”

  1. what could be better then
    what could be better then getting it from the horse’s mouth.
    Alok has made it clear with each point that he has learned ffrom his experience. i personally feel that this is really ggood information for the new startups – CEO’s, investors, enterpreneurs.

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