Why don’t startups have enough money?

Why don’t startups have enough money?

Why don’t startups buy other startups to grow faster and have fewer competitors? Because they don’t have money!

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?

Here are three simple facts:

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).

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.