Why Expanding Your Initiatives List Post-Fundraise is a Recipe for Disaster
The Mistake
It’s a classic rookie error: after a successful fundraise, founders expand their list of initiatives—often dramatically.
A CXO at a Series B startup told me: “We went from 3 core focus areas to 15 overnight.”
Why? Because the founder thinks, “Now that we have the money, let’s try everything. Something will stick.”
This mindset is a massive mistake.
Why It Doesn’t Work
More money doesn’t equal more focus.
More initiatives don’t translate to more results.
In theory, diversifying should help you move faster, test more, and find the right opportunity. In practice, it rarely works that way.
As a founder, you might be financially capable of taking on more, but the real question is:
Are these initiatives genuinely well-thought-out?
Do you understand the end goals of each one—and the next steps?
Do you even have the time and attention to track them all?
The answer is almost always NO. And the most critical point here: Founder attention is limited to 24 hours a day.
The Outcome
When your focus is scattered:
Teams are overwhelmed, not aligned, and uncertain of priorities.
Work gets done, but there’s no clarity on the output or what to do next.
By the time you realize the issue, it’s often too late.
Half the money is burned.
The business is worse off than before.
You’re facing a wave of layoffs.
It’s a mess you can’t afford.
The Takeaway
Whether you’ve raised funds or not—focus is everything. Avoid the temptation to pile on more. Narrow your focus, execute well, and avoid the cycle of chaos.