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, FleshmanSkip 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 Skip 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.
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.