Why do startups fail after MILLIONS of dollars?

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"How does your company fail after raising $50MM?" This was a real question on one of our Company Forensics videos. For someone outside the startup ecosystem, the amounts of money these companies raise just seem obscene. Some companies (Uber, WeWork) raise BILLIONS. Even smaller companies deal with rounds in the millions of dollars, and valuations in the hundreds of millions. So why do investors pour so much money into these tech startups? Today, I'm going to tell you why.
#slidebean #startups #fundraising
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[@ongeri]

I often get the feeling startups tend to spend more than they have to. Sometimes the venture capital model encourages founders to just hunt for more funding and investors rather than seeking profitability.

[@slidebean]

Thank you for watching!

[@Humblyguided]

Ongeri it’s true , it’s the founder decision how fast want to grow , if you wait for market change then whole prospect of profit effort also change

[@sanujitroy6830]

60% startup fail due to poor planning, poor quality candidates and over estimation

[@slidebean]

Thank you for your comment! Interesting!

[@jajajinks1569]

Ehhh... I think a lot of startups with great planning, great candidates and good estimations still fail. It's just the nature of the game. A lot of "multi-million dollar ideas" just end up not being scalable

[@darnit1944]

Practically similar to Plankton's "I dont know, I never thought I'd get this far"

[@solothebest1850]

@@jajajinks1569 True but TIMING is the key a lot of ideas have come and go throughout history. Facebook was not the first idea same with Uber or Airbnb. But their time was timed to perfection to a point that I believe investors were having a bidding war to give them as much money as they need it. The only problem with time it's virtually unpredictable but it's very clear when something is actually is at the right time.

[@joshm-d6124]

It annoys me how "A day in the life of a billionaire" get hundreds of thousands times as many views as explaining businesses.

[@nanakwakudadeyakrofi2977]

I guess it's easier to dream about being rich than doing the actual work that gets you there

[@slidebean]

🤔

[@OgolordIntl]

@@nanakwakudadeyakrofi2977 on point 👍❤

[@Ankushdas2001]

Wesley Billion dollar virgin

[@ceciliabaeza-castro9386]

Hey Caya! I’d love to hear examples about mission-driven startups.. perhaps Edtech or one that implement outside the US. Thanks

[@slidebean]

Thanks for the idea, noted!

[@danielodediran4637]

Seconded 🤗

[@kunalkumar3591]

byjus, unacademy, whitehatjr, simplilearn

[@kunalkumar3591]

i am loving this channel , very insigtful and top notch genuine content

[@Naruedyoh]

As an european, to see "medical care" and "paid vacation days" as "Work benefits" is very disturbing

[@scarx9151]

Well…Zionist run America so there is your answer.

[@Humblyguided]

Another wonderful video Caya, I would say 1st attempt not always successful, if you haven’t failed , you won’t be where you are today! Life is only lesson, how we apply those lesson is up to us, looking to more video! Keep going !

[@slidebean]

Thank you so much!

[@PomegranateChocolate]

One thing I learn from your site is people from Costa Rica don't have an accent in their English.

[@AmaritoMan]

You amaze me Caya thanks for explaining what was a mystery quite for some times in simple English thanks man

[@slidebean]

We are glad to help! 🙌🏼

[@henryugochukwu8398]

Insightful as usual...Thank you

[@slidebean]

Thank you!

[@MassiveSuccessVids]

Listening to the videos tells me, "Hello, wake up"! VCs will never invest in my multimedia content production-distribution mini-studio. Gotta find another way, hopefully self-sufficient.

[@slidebean]

Thank you for your comment! Interesting!

[@NurilGamer999]

wow thanks for this. really clarifies and adds a lot of knowledge

[@sirIancarter]

I love your videos! These are all fantastic

[@slidebean]

Glad you like them!

[@n00dle_king]

25% overhead on offered salary is way too low.

[@affansiddhiqui3739]

Damn ! I'm addicted to your videos

[@slidebean]

We hope you find them useful! Thank you for watching!

[@affansiddhiqui3739]

@@slidebean hope you find this content idea useful You can cover flipkart which is acquired by walmart (you guys might be knowing about this) And is the biggest rival of amazon in india 2. You guys can also give some great content related to stock market as you guys have very insightful and great understanding of coroporate finance and valuation and people in that community(niche) will also find your {slidebean platform} useful Hope you guys find these 2 ideas helpful And as usual thanks for providing valuable content

[@karuniyado]

02:16 made me laugh 😄

[@johnvincent1867]

7:04 as well 😂

[@slidebean]

😆

[@Humblyguided]

Muhammad Karuniyado me too look like I’m watching forensic files, or CSI Ny ,

[@ThisIsPa3zk]

hahahah i like how he tell that joke with a flat face lol

[@MWHM2]

Because they all try to reinvent the wheel while having no clue on how to run a business. Most of the time they have never had a serious job in a large corporation where they needed to implement or write processes.

[@jooky87]

Wow great videos that actually got me interested in your product.

[@slidebean]

Thank you for watching! Looking forward to have you as a happy Slidebean user!

[@silasadedoyin4733]

02:17 and then they make it to our startup forensics series 😂

[@slidebean]

It's funny 'cause it's true 😬

[@maps39]

i still don't understand why big platforms are sold, like why Instagram, Skype or other i don't know now was sold for billions, why they couldn't continue to be an individual like they were, maybe the ones who started them had enough and wanted a life time vacation and some money to invest in something else and not bother about profit or else

[@slidebean]

Good Q! Welcome to discuss with other founders or Caya on Discord slidebean.com/startup-cafe

[@thebasketballhistorian3291]

"Here's a $1 billion for Instagram." Very few people are not going to take that money. Yeah, they could've kept it going and possibly earned billions more but... #1. A billion dollars is enough money. #2. Your platform hasn't even made much or any profit yet. #3. There's no telling how your platform will end up in the future. It could fizzle out like MySpace or Vine.

[@dejrand]

@@thebasketballhistorian3291 Right on, if you ever read Zero to One Peter Thiel said that once a founder had run out of ways to grow, it's time to sell hence why Zuck didn't sell to Yahoo, he knew he had lots of growth left

[@DerDudelino]

Because Skype is not a business - they have a ton of users and data but never turned a profit. Same goes for Whatsapp

[@saidbendhiafkhiri9827]

I love this channel. Thanks for sharing your Knowlodge sir.

[@slidebean]

Glad you enjoy it!

[@kannasaikiranreddy6863]

Love your stuff

[@cayahere]

FIVE :00 🙌

[@slidebean]

💙

[@stealthoverflow]

Amazing content

[@slidebean]

Thank you!

[@HusravMahmudov]

Very helpful video thanks

[@slidebean]

Glad it was helpful!

[@jorgerangel2390]

It's so good to be a full stack developer

[@InkaHacker]

hahaha there is even entire books about this. "Why most businesses fail in the first five minutes and takes them 3-5 years to realize it. Position to win"

[@aliensonmars3662]

Make a video on books you recommended to read

[@mrpgroe]

What would be the best middle way between startups the raising lots of investments and the lean startup methodology, but still being able to compete with startups that have big investments? Why is there so much difference in the startup strategy between Europe and the USA (bay area)?

[@slidebean]

Good Q! Welcome to discuss on Discord slidebean.com/startup-cafe

[@abdulazeezsule4107]

Learning new info from every video

[@slidebean]

Glad to hear that!

[@grapplerke]

lol 150,000 a year. Must not be adding in bonus and stock options. SF and NYC engineers are making 300-500K in total compensation these days.

[@GameFuMaster]

The problem with concentration of wealth with so few people, is that there isn't as much innovation as there could be.

[@slidebean]

Thank you for watching!

[@jixxeo]

Great video

[@slidebean]

Thanks!

[@Noname-rm3xu]

"...and then how to fail a company" =))

[@furqonlanang9250]

Hmmm what about bootstrapping? I heard some good quotes from some 8 figure marketers "if you can't make money without money, then prolly you can't make money with money's" the advancement technology in 2020 is super amazing. You can use free trial or developer mode third part software/application to run your website or application with no money from ground up and start making some profit from there, Zoho is perfect example of bootstrapping startup, but hey life is a choice right there's pros and cons on every side :)

[@Humblyguided]

furqon lanang I like this quote “ If you cant make money without money, then prickly you can’t make money with money!” Inspiring thou!

[@rajimordecai1099]

Please make a video on startup success. We've had enough on startup failures. Haha. Thanks

[@slidebean]

Great suggestion! We started with The North Face! kzbin.info/www/bejne/qp3OZKh8a958a8k

[@ansha2221]

@@slidebean Yes more of those success stories will also be useful. The above videos are great. Keep them coming. Thank you for creating this channel

[@DrewLytle]

So relevant with Boosted

[@slidebean]

🙌

[@rajbiswas776]

You should write a book. I know I will read it.

[@hilltan2611]

What do you think of idea evaluation / consulting services such as ideaconsult.com.au? Anyone find it helpful?

[@josim8908]

How would you pitch other companies to use your service?

[@slidebean]

Good Q! Welcome to discuss on Discord slidebean.com/startup-cafe

[@booneboone9705]

@@slidebean make a video about it 👍🏾

[@aprilmintacpineda2713]

Hmmm, don't get me wrong Caya, but there seems to be an inconsistency, you just said: "WeWork raised 22 billion dollars [...]" and then "Why do investors pour so much money into these tech startups". So did you just say that WeWork is a tech startup? Because I thought it wasn't, based on your video startup forensics about we work when you said: "Wework was not a tech company, it was a real estate company with some tech.", so has there been any changes or was my inference incorrect?

[@TheOnlyTruthSerum]

WeWork was thought to be a Tech start up by the investors because the founders paraded it as one and that was why they raised so much money (as a tech startup that they weren't) no inconsistencies here

[@theoneandonlyzulu3342]

150k, bruh... I'm moving to California 😂

[@95blahblahhaha]

Non flattering shirt.... But I love all of your videos!!!

[@Hasan1279]

how can i subscribe for 1 month free trail?

[@Entertainment_Chilli]

Hi, I'm an Indian. I want to start my own Cosmetic company. Which country is best for investment Singapore LTD., LLC US or Canadian corporation ? Which country is more beneficial ? Please suggest.... I wanna invest in Foreign. 💯

[@kevinjones1053]

Registering in Singapore - 17% corporate tax rate Registering in Dubai - 0% corporate tax rate Registering in USA - 21% corporate tax rate Registering in Canada - 28% corporate tax rate The factors to consider here are: i. Ease of doing business ii. Corporate Tax Rate iii. How much the government supports offshore registration

[@Entertainment_Chilli]

@@kevinjones1053 Hi, I'm an Indian. I want to start my own Cosmetic company. Which country would be best for e-commerce, supportive & earn higher profits as well ? What is the difference between LLC and Canadian corporation ? Please suggest.... I wanna invest in Foreign. Can I've ur contact details ? 💯

[@kevinjones1053]

@@Entertainment_Chilli Don't register a company before you start making money. Start off as a sole proprietor. You need make sure that people actually want your product.

[@kevinjones1053]

@@Entertainment_Chilli An LLC is a limited Liability Company, what it means is no-one can take your personal assets even if the business fails. It has a lot less regulations. A Corporation is a much more formal registration with a lot of regulations.

[@kevinjones1053]

@@Entertainment_Chilli It is better to register in a low tax country. You can Google the countries with the lowest corporate tax rate.

[@fazilkaratt9049]

OYO room

[@hritikpawar2876]

Startup failed because they not follow the lean startup methodology.

[@mrpgroe]

Fully true!!!

[@SlasherChick]

I can’t disagree

[@slidebean]

Good point! Welcome to discuss on Discord slidebean.com/startup-cafe

[@kursboss5658]

I am looking for investors

[@sufimuslimlion4114]

Okay what’s your email?

[@KwameSenecaLP]

You talking around the subject matter

[@bigbanknewyork3655]

Avoid AWS like the plague

[@lifelyrics5659]

This is crazy good info brother! I hope I can give u 5 subscribes than 5 likes

[@OgolordIntl]

I love the Trump part😂

[@slidebean]

Thank you for watching!

[@Samueljeldi]

Trump won🤣🤣🤣🤣 nailed it.anyways "none of our business"😂😂

[@Humblyguided]

Samuel Jeldi you are fire ! Trump popular slogan

[@marcusdavenport1590]

Less politics please!!!!

[@jblasutavario9549]

It's his channel. He can say whatever he wants. Deal with it.

[@dneptune3]

People who are way less qualified speak on politics all the time.

[@BobbyGeneric145]

Hey Caya, do you enjoy the freedoms you have to prosper in the United States? Yeah? Then shut up with your criticism of the president. If you don't like who is in office, take yourself back to Costa Rica and make all the jokes you want ...