Subscribe to Entrepreneur for $5
Subscribe

Why This VC Won't Fund Startups That Serve Startups

By
This story appears in the July 2016 issue of Entrepreneur. Subscribe »

As the startup gold rush grows, I've noticed a scary trend: with questionable finances are being launched to service other startups with questionable finances. These take many forms, like exclusive property-management software for Airbnb hosts, or specialty car-leasing arrangements for Uber drivers. Sure, these new marketplaces are awash in cash, but many VCs consider this risky . If you're tempted to join the crowd, here are three questions you must consider.

Paul Bradbury

1. How dependent are you?

Continue reading this article - and everything on Entrepreneur!

Become a member to get unlimited access and support the voices you want to hear more from. Get full access to Entrepreneur for just $5.

Entrepreneur Editors' Picks