1confirmation founder: In the early stages of entrepreneurship, there is a negative correlation between financing scale and project success

Nick Tomaino, founder of 1confirmation, wrote in an article on X that one of the most unexpected developments since 1confirmation started is that there is a negative correlation between the initial financing size and the long-term success of the project in the early stages of entrepreneurship. Founders often hope to attract market attention through large financing, and investors generally tend to participate in certain transactions for the same reason. 1confirmation did this at first, but it turns out that the only three failed projects in our portfolio had raised more than $10 million before the product found market fit, while the other 46 projects, although the financing amount did not exceed $10 million, were still running, and many of them had good momentum. Nick added that there are two main reasons for this contrast: one is that raising too much money too early can easily cause distraction, and the team may hire too many people to try different fields; the second is that it may wear down the team's motivation, and the founder may lose the sense of urgency because he feels that he has succeeded.