Entrepreneurs are overconfident and their business models are not stable enough. Many entrepreneurs are too confident after getting round B and A financing. C-round financing is also easy to obtain, but the amount of C-round financing is larger than that of B and A, and the business model of entrepreneurs is not mature enough at this time.
Investors will not invest in projects because they can't see the actual income data. Relying on burning money to increase the access of users to financing e, many entrepreneurs spend money to buy users in advance in order to achieve the purpose of financing. A lot of traffic can be obtained between industrial plants, but this way is not a long-term solution after all. The lower level does not have enough funds, and there is a problem of capital chain, and the enterprise will eventually end in failure.
After successful financing, I am eager to expand myself. Many friends who started their business for the first time are eager to expand the existing situation after getting the AB round of financing.
C round financing introduction:
The third financing, at this stage, the company has begun to make profits, and enterprises with good benefits can complete listing and carry out stock market financing. Because the successful business model verification overwhelmed the competitors in the same industry through the expansion of capital scale, it is theoretically the last round of financing. However, if the listing cannot be completed, DEF or more rounds of financing are needed to achieve the goal.