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The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch cover image

20VC: Flexport's Ryan Petersen on Why Investor Relations Are Overrated, Why Boards Have To Be Rethought & Why MBAs Do Not Make Bad Entrepreneurs

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

NOTE

Low margin high market

In later stages of fundraising, when significant amounts are involved, investors tend to scrutinize the business model intensely. This can be challenging for companies with a unique model like a global freight forwarder that coordinates complex supply chain networks without owning physical assets. Such companies may have low margins due to high operational costs, which can deter traditional VC investors focused on high-margin businesses like software companies. However, the emphasis should be on the market size and potential revenue rather than just profit margins. It's more strategic to look at capturing a small percentage of a vast market than a high percentage of a small market for long-term success.

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