Is a startup that fails to raise additional capital after its Series A considered a failure?

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JASON LEMKIN

No, unless it’s running out of money and goes under.

There are plenty of fairly strong start-ups that just try to raise their Series B (or Series A, whatever) just not quite at the right time.

The revenue is a little light.  The burn is a little high.  It’s just a little too early.  The growth is a smidge too low.

Yes, sometimes, it’s over.  Done.  That’s it.

But far more often, 3, 6, 9 months later … if they have the runway to get there … they grow into the company they needed to be to raise.

And close the round.

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Published on November 13, 2015
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