My friend raised $50k after showcasing his AI supply chain MVP and landing three great pilot clients, and we were all really excited!
But he made a bit of a misstep by jumping straight into "scale mode." He hired a big team, got a fancy office, and started spending a lot on marketing.
Fast forward 18 months, and the money ran out, the product never really took off, and sadly, the company had to close its doors.
The lesson hit hard: Never increase your spending before you’ve established product-market fit. Just because you have capital doesn’t mean you have validation. It's essential to validate your concept thoroughly first.