ArticleWhy do VC's Keep Giving Failed Founders Money?

Why do VC's Keep Giving Failed Founders Money?

Failed Founders are some of the best investments because they understand precisely how hard it is to build a startup, and most importantly, are willing to do it again.

Yes, Founders fail. Sometimes, they fail in spectacular fashion (which is harder than it looks), but they do indeed fail. We seem to understand that part well, but what tends to confound many of us is why those same failed Founders can continue to raise more money from investors.

Haven't investors learned their lesson? Don't they understand that the last time they gave that Founder money, they took a monumental loss? Why, with so much evidence that the Founder has practically set their money on fire, would they even think about giving them more?

Well, friends, it turns out t...

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