It also has a lot to do with the rate at which you took to get to that "death zone". If it takes three years to get to $50k/mth, there will be big question marks around your ability to scale beyond that.
It's not a coincidence that this zone maps up with the "chasm" between niche and mass-market appeal. If a company has been unable to already demonstrate that they can scale the product effectively, they're asking a VC to take a punt on whether they can or can't...and if it's taken 3 years, then evidence already suggests that perhaps they can't.
The other problem, is that after 3 years whilst it still may not be clear what you're company could be, it's already known what you're _not_. The possible outcomes have been narrowed. It's known you're not going to be a complete failure, but it's also known that you're not a "Unicorn".
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It also has a lot to do with the rate at which you took to get to that "death zone". If it takes three years to get to $50k/mth, there will be big question marks around your ability to scale beyond that.
It's not a coincidence that this zone maps up with the "chasm" between niche and mass-market appeal. If a company has been unable to already demonstrate that they can scale the product effectively, they're asking a VC to take a punt on whether they can or can't...and if it's taken 3 years, then evidence already suggests that perhaps they can't.
The other problem, is that after 3 years whilst it still may not be clear what you're company could be, it's already known what you're _not_. The possible outcomes have been narrowed. It's known you're not going to be a complete failure, but it's also known that you're not a "Unicorn".