That is correct. That is not a typo. Investors gave these boys 7 million dollars to try and figure out a "new" way to sell fresh flowers.
Yes, that is not a type either. SEVEN MILLION dollars. This is the state of venture capital in Silicon Valley. I would like to think that venture capitalist outside of the San Francisco bubble have some better choices out there? Does it really make any sense to fund people that have never worked in the flower business or even know the basics?
This is why few, if any, of the venture-backed companies of the last few years will survive. None of them will be able to figure out a cash flow positive business model before they burn through all of this venture money.
Many of us have to raise capital at some point, but the burn rate of some of these start ups is just off the charts and not sustainable.
If they had bothered to ask us how to deliver flowers in LA, we could have saved them quite a bit!
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