<ul><li>Startups that raise significant amounts of capital fall into the trap of scaling too quickly, which can be a death sentence.</li><li>Founders can lose sight of their core mission when they're flush with cash leading to futile spending.</li><li>Overfunding can give rise to superficial growth without actually solving real problems for customers, making the growth hollow and unsustainable.</li><li>Need to justify valuations and meet aggressive growth targets often forces startups into high-risk gambles leading to catastrophes.</li><li>Research shows that startups that raise large rounds early on are more likely to fail than those that gradually approach fundraising.</li><li>Startups that are forced to be lean and scrappy often develop a stronger understanding of their market, a more focused approach to solving problems.</li><li>Mailchimp successfully avoided the pitfalls of overfunding and built a billion-dollar business with sustainable growth.</li><li>Startups that succeed are the ones with the most discipline, focus, and customer insight, not with the most money.</li></ul>

The Fastest Way to Predict a Startup Wipeout Is to See Who’s Raising All the Money

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