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Tag: funding

People vs. business models: Warren Buffet’s dilemma

In Quora, somebody asked why Warren Buffet prefers not to invest in startups [1]. One of the answers that resonated with me was this one: “In an interview several years back, Warren Buffet said that he does not like to invest in companies whose success is based on the smartness of its people. His reasoning was that all companies hire…

I hate to see investors coming into a growing startup… here’s why

I hate to see, from a customer’s perspective, investors coming into a growing Web startup. Because it only means rising prices. The logic is this: 1) the investors need a positive return, and 2) the startup is growing because it has created something valuable, in most cases significantly more valuable than what it is charging from the customer. Therefore, the…