Labnotes has a list of 7 things for startups to know. Among them:
VC funding is not a liquidation event. When youre playing in an emerging market, the most you can do is speculate. VC rounds are hard numbers, but theyre not market intelligence, unless youre price shopping for interest rate. Borrowing money is not the definition of success, its a sign that youre not making a profit.
All problems are interesting to solve. Some problems are also profitable to solve. It depends on how cheaply you can do it in the face of mounting competition. Yes, you can make a boatload of money dominating in the software industry, but even Microsofts ticket for success was bought for cheap. The Web is not different.