Joe Procopio writes about the end of the raise-rinse-repeat start-up investment path
He writes in one of his latest columns that the "cheap money party" has come to an end.
Joe Procopio, Chief Product Officer at Get Spiffy and Founder of teachingstartup.com, writes in a recent column that “serious entrepreneurs, investors, and technical talent are all quietly walking away from the traditional raise-rinse-repeat start-up investment path.”
Noting that he has founded “14 start-ups and counting,” Procopio says that he has “come to realize that the ‘start-up community’ and the ‘start-up ecosystem’ refer to a very small sliver of very loud high-tech, high-growth ventures, founded and grown via the raise-rinse-repeat investment cycle, and perpetually in search of product-market fit that is vaguely defined and flywheel mechanics that rely on millions of dollars of burn in order to find traction.”
He writes that most start-ups including his own “were founded on a kind of ‘cheat’ mechanism — a flywheel we knew we could spin that wouldn’t necessarily let us coast to a billion dollar business, but would provide time for us to figure out those answers. In 2024, that game is over. We may start playing again down the road, sure. But right now, well, you don’t have to go home, but you can’t stay here.”
You can find the insightful column here.
Procopio adds that he’s “going to keep documenting the end of the cheap money party and what comes next. If you’re trying to build a business the right way, now would be a good time to join my email list at joeprocopio.com.”
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