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by JSONwebtoken 3235 days ago
Overnight success is a misnomer because it's impossible to demonstrate true success overnight (or in a few years) as it relates to a business. Just the headline of this article should make a good argument to be wary of startups that appear to be doing too much in too little time.

If you invest a startup that claims to have been founded only 2 years ago and says to have already acquired so and so number of users, you might assume a certain velocity of growth for that company. If it turns out that the founders had unofficially invested 5 years of labor rather than 2, you just lost 60% value in your investment assuming the company valuation was somewhat proportional to their "traction."

The biggest question in a startups lifetime is "will they be profitable?" not "have they spent enough on Google AdWords to make it look like usership is going up?"