Why don’t startups buy other startups to grow faster and have fewer competitors? Because they don’t have money!
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A startup in the early stage cannot afford to buy anything valuable, so that’s why we are talking about the money to invest. Another question is: why doesn’t a startup have enough investment money?
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Here are three simple facts:
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1. Many people around you have much money to invest.
2. Most of these people don’t know where to invest their money.
3. People with much money can distinguish between a profitable deal and a fail (depends on risk/profitability proportion).
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The moral of this story? If a startup cannot raise funds, then either the idea is not profitable, or it hasn’t found enough reach investors.