Recent entrepreneurs A investment opportunities in the tens and hundreds of millions are a " worrying process " that " creates the wrong incentive structure for long - term success " according to digital health venture capitalist , Skip ventures . Following large initial A rounds , entrepreneurs are often tempted to overspend , as VCs pressure CEOs to spend their investment to start generating returns . Another mistake made by well - funded early stage companies is to start selling before they have " viable sales channels " and a " scalable sales process " . Mr Fleshman urges entrepreneurs not to make the same mistakes with digital health companies as they have done with technology companies , and keep the Series A rounds to manageable sizes .
Recent Series A investment rounds in the tens and hundreds of millions are a "worrying trend" that "creates the wrong incentive structure for long-term success" according to digital health venture capitalist, Skip Fleshman. Following large Series A rounds, entrepreneurs are often tempted to overspend, as VCs pressure CEOs to spend their investment to start generating returns. Another mistake made by well-funded early stage companies is to start selling before they have "viable sales channels" and a "scalable sales process". Mr Fleshman urges VCs not to make the same mistakes with digital health companies as they have done with technology companies, and keep the Series A rounds to manageable sizes.