Innovative ideas can be brought to life in a variety of ways for a foundation for a startup. There’s no single universal truth about how it should be approached to guarantee success. That’s why entrepreneurs take risks when they start a company. They have to navigate an environment where customers’ preferences constantly change, market niches are highly specific and competition is always intense. Eventually, many startups end their life in the so-called "valley of death."
In the language of investors and entrepreneurs, the valley of death
refers to that critical period when a startup has begun to operate but has not yet produced revenue. It’s never easy to make it out of the valley, so to help solve this problem, many founders look for venture capitalists (VCs) who can fuel the scaling of their startup and provide it with higher viability and resilience.
Facing the necessity to find investors, entrepreneurs often try to guess how VCs make decisions to back a startup. Often newcomer founders think of this process of decision-making as something either mysterious or random, but in fact, I believe it can be deconstructed and systemized.