Unleashing the Power of Your Inner Unicorn: Mastering Mistakes

TLDR:

• News startup, The Messenger, failed to raise $50 million, resulting in its shutdown.
• 94% of billion-dollar entrepreneurs did not rely on venture capital, showing the flawed nature of the VC model.

Amidst The Messenger’s collapse, there are seven lessons that entrepreneurs can learn:

1. Decide whether to rely on VC or be finance smart.
2. Make the VCs come to you.
3. Authenticity and credibility matter; do not fake it.
4. Consider whether your startup is a tech or media startup and understand the stage of the industry.
5. Find an unmet need in an emerging trend.
6. Use a finance-smart strategy on the emerging trend.
7. Avoid multiple rounds of VC to reduce dilution and stay as a leader.

The Messenger’s strategy of spending $40 million to earn $3.8 million in revenues and having expensive offices was not finance-smart. Entrepreneurs should focus on substance and avoid showing off without real results.