#4 Startups are a Risky Business

#4 Startups are a Risky Business

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Alex meets up with an investor he talked with early in the pitching process.  This time he’s ready with an updated deck, financial models, and Matt Lieber, his business partner. The pitch goes well, but it’s still missing one crucial element.

Alex tells a story about reading The Giving Tree to his kids, and reflects on how building a massive company could be a risk for him and his family.  He realizes what sounds like success to him, building a profitable company that grows steadily, could be a risk for some investors, who need much faster growth.

Gradually, Alex and Matt learn there are many different reasons people decide to invest in a company. Their fortunes take a turn with the help of an unlikely supporter – Andrew Mason, founder and former CEO of Groupon.