External funding alone cannot assure a startup's rise. While raising capital is important, entrepreneurs should not focus on getting money first to deliver consumer value later. From day one, the user has to be at the centre of what you do. Running a successful venture is not just about burning cash and grabbing eyeballs. Even if one gets all these ingredients right, the issue of scaling up comes to the fore. That's the way the cookie crumbles. Funding is a cycle. One should neither get too euphoric during an upswing nor too shocked in a downturn. The current scenario, where early stage funding is not as cheap is it was perceived to be, is a very healthy sign. In the last few years, there has been a big influx of angels and several seed funds were set up. The bandwagon effect has now given way to rationalization.
