Shishir GuptaAngel Investment, Venture Capital, Idea Validation

I have helped more than 500 startups worldwide.

#Founded first startup in year 2001 - 18 years of business experience.
#CEO of leading Startup Consulting Firm,
# Investment Banker - Angel Investment, A Series for startups.
# Startup Lawyer - Corporate legal matters.
#Full Stack Developer - Software Architecture Web/App
# Experience of AngelList - Connected to Angel Investors/VCs worldwide
# Mentor, Advisor & Consultant for Startups
# Author of Startup Easy - A Practical Guide | Buy here:

Featured on CNBC Young Turks, TiE the Knot, Startup Weekend & Startup Grind.

Recent Answers

A Startup may fail because of multiple reasons, however, for me the main reason is Founder(s). In case the founders don't want to startup to fail, then it will never fail.

Why do you have to write an essay? Is it for your own learning? I guess it is. Right?

Then why should you pay for it? He/She will learn from your money. Just to get good marks? Better not to submit the essay.

Indeed a very good question, I will try to keep my answer simple.

Lets consider an example, suppose you have 1 Kg of raw material for baking cakes. You can either make two cakes of 500 grams each of 4 cakes of 250 grams each, or at max 5 cakes of 200 grams each.

You want to make many cakes as you don't know which cake customer will like. Let's keep the sales price of cake as $100 per Kg, assuming the cost of cake to be $60. That gives you $40 profit on total sales.

The more cakes you bake, more efforts you have to put in, there may be a case that you end up spoiling all the cakes as you may not be able to focus.

Case 1: Suppose you made 5 cakes of 200 grams and customer liked 2. You will get $20 per cake, that equals to $40 total. You will end up with a loss of $20.

Case 2: You made 2 cakes, customer liked only one, you get $50 bearing a loss of $10.

Case 3: You made only one cake, you focused and devoted all your time in making it best. Customer bought it for $100 fetching you $40 profit.

In each case reward is linked with risk. I would recommend you to execute only one idea at a time. You can filter out all the ideas and choose the best, then execute it. Believe in yourself and take risk. Even if it fails, it will give you a lot of ground for the next idea.

All the best.

This depends upon the syndicate that you are a part of. As you have asked this question a long ago, lot of things have changed.

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