We have all heard many of the reasons why startups fail such as no product or market fit, solution not important enough to the customer, trying to scale to quickly, fell in love with the solution, not solving the problem, didn't validate assumptions, not able to raise funds needed and many more.
While all of these are true, the main reason startups are not able to raise funds -- and about 90% are not able to raise funds -- is because they were not investment ready. This means they did not have evidence to show investors that their business model could deliver repeatable, profitable, scalable revenues. In other words, they had a business plan based on untested, unverified assumptions.
Ever since the dot.com bust, the development and funding of startups have changed. The old startup model which treated a startup like an operating company no longer works. Steve Blank, (Entrepreneur and Professor) described a startup as an organization looking for sustainable revenues. Once sustainable revenues are achieved, the startup becomes a business in which strategies and tactics become more projectable.
This change in attitude began to change almost every aspect of creating and developing a startup from product development, to customer discovery to sales development to business execution.
Harbor Capital Group is committed to helping entrepreneurs craft an evidence-based business model that generates profitable revenues.