1confirmation founder: in the early stages of entrepreneurship, there is a negative correlation between the size of financing and project success

Odaily Planet Daily News According to Nick Tomaino, the founder of 1confirmation, in a post on X, one of the most surprising developments since the inception of 1confirmation is the negative correlation between the initial funding size and the long-term success of the project in the early stages of entrepreneurship. Founders often hope to attract market follow through large-scale financing, and investors generally tend to participate in certain transactions for the same reason. 1confirmation initially did the same, but it turned out that only three failed projects in our investment portfolio had raised more than $10 million before finding market fit, while the other 46 projects, although raising less than $10 million, are still running, and many of them are developing well. Nick added that there are two main reasons for this contrast: first, raising too much money too early can easily lead to a distraction of attention, and the team may hire too many people to try different areas; second, it may erode the team's motivation, and the founder may lose a sense of urgency because they feel successful.