Why most startups deserve to die !
Just because anybody can start a company doesn’t mean he or she should. Or that all ventures deserve a priori an equal chance to survive.
Resources to support fledgling companies are scarce. It is hard to get financial support. It is hard to find the right staff to help build a company and its vision in the early stages. From a business point of view, getting a venture from drawing board to marketplace should be a weeding-out process.
If the better ventures tend to attract the resources needed to bring their idea to the marketplace, this prevents a lot of resources from being wasted by low-quality ventures that might never survive in the long run anyway.
So the reviled valley of death may actually reflect the “value of death,” an effective mechanism to select only the best, for the very reason that it is so inherently hard to survive and prosper with a contrarian new idea.
That’s the nature of being an entrepreneur: to see the world differently from everyone else, but then to be able to persuade the markets—financial, product, and labor markets—that you are right.
Notes from the book, Worthless, Impossible and Stupid: How Contrarian Entrepreneurs Create and Capture Extraordinary Value by Daniel Isenberg
This is a brief synopsis for a risk management in terms of aspirin entrepreneurs.