Startups or Sinkholes? When Your ‘Brilliant Idea’ Becomes an Expensive Hobby

🧠 Quote that cuts like a blade:

“If your business can’t survive without funding, it’s not a plan – it’s an expensive hobby.”
— Robert T. Kiyosaki


Let’s be real: Every second founder thinks they’re the next Steve Jobs, and every third PowerPoint slide screams “disruptive!” But the market doesn’t give a damn about your MBA, your TED Talk dreams, or your AI-fueled “vision.”

What it cares about is: Are you making money or burning it?

And here’s the brutal truth — millions of businesses crash and burn within their first year not because they had a bad idea, but because they relied entirely on funding that never came.


đŸ”„ LIVE EXAMPLES OF FUNDING-DEPENDENT DEATHS:

1. Doodhwala (India) – Milked It Too Hard

  • 🐄 Bengaluru-based hyperlocal milk delivery startup.
  • Raised around $2.2 million.
  • Focused on fast expansion before achieving profitability.
  • Shut down in 2019 after failing to raise further rounds.
  • Reality check: Milk delivery wasn’t new or sexy enough for VCs forever. Customers weren’t loyal. Expenses were massive. Poof.

2. Stayzilla (India) – Stayed Too Ambitious

  • Competitor to Airbnb in India.
  • Raised $33 million, scaled too fast into 4,000+ towns.
  • In 2017, shut shop citing “unsustainable cash burn” and “inability to raise follow-up funding.”
  • Translation? Business model looked nice on pitch decks, but didn’t pay rent in real life.

3. Quibi (USA) – $1.75 Billion in the Drain

  • A streaming platform built for mobile users.
  • Backed by Hollywood giants. Thought people wanted “quick bites” of entertainment.
  • Launched in April 2020. Shut down by October 2020.
  • Despite massive funding, failed to hit product-market fit. Burned out in 6 months.
  • Moral: You can’t fund your way out of a product nobody wants.

4. Katerra (USA) – Construction Tech Giant

  • Raised over $2 billion from SoftBank.
  • Tried to revolutionize the construction industry.
  • Collapsed in 2021 due to poor execution, financial mismanagement, and—again—dependency on new funding.
  • Business without a backbone = house of cards.

📉 And Then There Are the Ghost Startups


  • Out of every 100 Indian startups, 90 fail within the first 5 years, and 70% collapse in their first year itself.
  • Why?
    • Unrealistic expectations of easy funding.
    • Zero backup plan if VCs say no.
    • Founders build pitch decks, not businesses.
    • Everyone’s a visionary. Nobody wants to sell soap.

They think the idea alone will open VC vaults. Spoiler alert: It won’t.


đŸȘ“ Hard Reality: Funding is Oxygen, Not the Heartbeat

Yes, money helps scale. But if your business can’t breathe on its own — you’re just buying time, not building legacy.

Most successful businesses didn’t start with crores in the bank. They started by selling.

  • Zoho – Built profit-first. No VC. Real users, real revenue.
  • Mailchimp (USA) – Bootstrapped. Sold for $12 billion.
  • Zerodha (India) – No external funding. Now valued over â‚č50,000 crores.

These aren’t unicorns. They’re cockroaches — they survive, thrive, and multiply without fancy suits and free lunch meetings.


đŸš« What Funding-Obsessed Founders Forget:

  • VCs fund growth, not survival.
  • If you’re burning more than you’re earning — you’re not scaling, you’re sinking.
  • If your customer doesn’t want to pay for your product — the VC shouldn’t either.

🧠 Closing Thought:

If your “startup” needs constant feeding and can’t earn enough to wipe its own nose — you’re not running a business. You’re cosplaying Elon Musk with someone else’s wallet.

Don’t chase funding. Chase revenue. Chase resilience.

Or else
 prepare to add your name to the list of expensive hobbies that died trying to become businesses.


đŸ”„ Inspired or Offended? Either way, it means the message hit.
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#NishaniStyle #StartupTruths #HardPill #FundingMyths #RobertKiyosaki #RichDadPoorDad #BootstrappedOrBusted #SaveStartupsFromStupidity #BuildNotBeg

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Hi, I’m Nishanth Muraleedharan (also known as Nishani)—an IT engineer turned internet entrepreneur with 25+ years in the textile industry. As the Founder & CEO of "DMZ International Imports & Exports" and President & Chairperson of the "Save Handloom Foundation", I’m committed to reviving India’s handloom heritage by empowering artisans through sustainable practices and advanced technologies like Blockchain, AI, AR & VR. I write what I love to read—thought-provoking, purposeful, and rooted in impact. nishani.in is not just a blog — it's a mark, a sign, a symbol, an impression of the naked truth. Like what you read? Buy me a chai and keep the ideas brewing. ☕💭   For advertising on any of our platforms, WhatsApp me on : +91-91-0950-0950 or email me @ support@dmzinternational.com

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