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On Startups, Be Wary of What You Read

Just because a company gets featured in a major publication, doesn’t mean it has made it.

It could mean one of two things: (1) that the company is profitable or (2) the company is turning heads with a revolutionary product but still has a lot of work to do.

The startup world is mostly a mirage, with many young businesses touting their user base and showing off successful case studies.

More investors should learn how these new technologies actually work before writing the big checks.

There’s always three good questions to ask in a VC evaluation: (1) Does the product make people money, (2) save people money, (3) and does it provide a good customer experience.

Checking two out of the three is a guideline for smart investing.

We all want to prove our idea and product is a game changer and we do that by getting national features and raising more money. Just be aware of the hoopla.

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By Wells Baum

Wells Baum is a daily blogger who writes about Life & Arts. He's also the author of Discvr.blog and four books.