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Why This VC Won't Fund Startups That Serve Startups

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?

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