Startups or Sinkholes? When Your ‘Brilliant Idea’ Becomes an Expensive Hobby
đ§ Quote that cuts like a blade:
âIf your business canât survive without funding, itâs not a plan â itâs an expensive hobby.â
â Robert T. Kiyosaki
Letâs be real: Every second founder thinks they’re the next Steve Jobs, and every third PowerPoint slide screams âdisruptive!â But the market doesn’t give a damn about your MBA, your TED Talk dreams, or your AI-fueled âvision.â
What it cares about is: Are you making money or burning it?
And here’s the brutal truth â 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.
đ„ LIVE EXAMPLES OF FUNDING-DEPENDENT DEATHS:
1. Doodhwala (India) â Milked It Too Hard
- đ 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 wasnât new or sexy enough for VCs forever. Customers werenât loyal. Expenses were massive. Poof.
2. Stayzilla (India) â Stayed Too Ambitious
- Competitor to Airbnb in India.
- Raised $33 million, scaled too fast into 4,000+ towns.
- In 2017, shut shop citing âunsustainable cash burnâ and âinability to raise follow-up funding.â
- Translation? Business model looked nice on pitch decks, but didnât pay rent in real life.
3. Quibi (USA) â $1.75 Billion in the Drain
- A streaming platform built for mobile users.
- Backed by Hollywood giants. Thought people wanted âquick bitesâ 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 canât fund your way out of a product nobody wants.
4. Katerra (USA) â Construction Tech Giant
- Raised over $2 billion from SoftBank.
- Tried to revolutionize the construction industry.
- Collapsed in 2021 due to poor execution, financial mismanagement, andâagainâdependency on new funding.
- Business without a backbone = house of cards.
đ And Then There Are the Ghost StartupsâŠ
- 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.
- Everyoneâs a visionary. Nobody wants to sell soap.
They think the idea alone will open VC vaults. Spoiler alert: It wonât.
đȘ Hard Reality: Funding is Oxygen, Not the Heartbeat
Yes, money helps scale. But if your business canât breathe on its own â youâre just buying time, not building legacy.
Most successful businesses didnât start with crores in the bank. They started by selling.
- Zoho â Built profit-first. No VC. Real users, real revenue.
- Mailchimp (USA) â Bootstrapped. Sold for $12 billion.
- Zerodha (India) â No external funding. Now valued over âč50,000 crores.
These aren’t unicorns. Theyâre cockroaches â they survive, thrive, and multiply without fancy suits and free lunch meetings.
đ« What Funding-Obsessed Founders Forget:
- VCs fund growth, not survival.
- If you’re burning more than you’re earning â you’re not scaling, you’re sinking.
- If your customer doesnât want to pay for your product â the VC shouldnât either.
đ§ Closing Thought:
If your “startup” needs constant feeding and canât earn enough to wipe its own nose â youâre not running a business. Youâre cosplaying Elon Musk with someone elseâs wallet.
Donât 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.
đ„ Inspired or Offended? Either way, it means the message hit.
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