Jon’s Network

If a vendor is trumpeting their VC funding rather than their sales numbers, be wary. I’ve learned this the hard way.

Mike Fratto at the NWC Blog reflects on the Lockdown closure and the sudden disappearance of VC funded startups:

That’s a very real risk and one of the reasons why funding announcements and customer wins are important to track. If you’re looking at NAC vendors that are still surviving in whole or in part on funding, you have to make doubly sure to perform due diligence on the company’s financials before and after the sale.

That’s good advice for analyzing any vendor. Make sure they are earning more than they are spending, or getting there quick.