Startup Myths to Leave Behind in 2025

Myth: I have an idea. Time to talk to investors.

One of the most common misconceptions is that investors fund ideas. They don’t. Unless you’re Elon Musk, with a track record of generating returns, investors want proof you can execute.

That means building something (even a scrappy MVP) and showing that real people are using it and finding value. Phil emphasizes the importance of external evidence that your idea solves a real problem. Traction, even in a simple form, speaks volumes. “If all you have is an idea, then you look like someone who can write a deck, but can’t actually do much,” he explains. Investors fund momentum, not theory.

Myth: Only share wins with advisors and investors.

Founders often assume they need to present a flawless front. In reality, seasoned investors know that early ventures are full of failures—and they expect transparency.

What matters more than success is learning. Phil put it clearly: “The currency that’s much more important early in a venture is not revenue, it’s learning.” Show that you’re listening to your users, testing hypotheses, and adjusting based on what you learn. If something fails, demonstrate what insights came from it. That builds trust.

Myth: I need to build an app before I can sell.

Founders sometimes think they can’t go to market until the app is built, branded, and polished. But waiting to automate or scale before understanding the customer need is often a costly mistake.

One founder at the i-lab learned this the hard way. After raising money based on a few promising customers, the team discovered those were false positives. They struggled to find product-market fit, even after investing heavily in the product. Eventually, the founder sat down with a spreadsheet and manually solved the customer’s problem. That led to real insights and paying customers.

From there, they gradually automated parts of the process and eventually built a more scalable solution. But they didn’t start with code. They started with outcomes.

Phil summed it up: “Don’t focus on building an app. Focus on delivering an outcome the customer wants. If you can do that manually, do it manually. Then automate.”

Myth: I need branding and marketing to sell my B2B product.

Branding, slogans, and ads may work for consumer products or established B2B giants like Salesforce. But for an early-stage startup, marketing won't save you if you haven’t had real conversations with customers.

B2B sales are about relationships. Your early customers won’t come from a paid ad, they’ll come from direct outreach. Use LinkedIn, email, and whatever channels you have to speak directly to people who are already losing sleep over the problem you’re solving.

In Phil’s words, “Don’t sell your product. Sell the outcome. And sell the fact that another customer like them got that outcome using your product.” That’s where trust comes from.

One of Phil's favorite analogies comes from his product-market fit workshop: “You’re not on their Trello board.” In other words, your product isn’t on your customer’s to-do list. Your job is to figure out what is on their list, the problem they’re already trying to solve, and hook your solution into that.

Myth: Every startup needs to raise.

The traditional startup narrative shows a steep cash burn curve, followed by a funding round and eventual profitability. But with the rise of no-code platforms and generative AI, that model no longer applies to many startups.

Today, founders can often build functional MVPs, reach customers, and generate revenue without ever going cash flow negative. Especially in B2B SaaS, it’s possible to get to real revenue quickly.

Phil notes that while deep tech or biotech may still require early capital, many ventures can delay fundraising and get better valuations when they do or skip it entirely.

Myth: I can’t start until I find a technical co-founder.

No-code tools like Replit, Glide, Bubble, Bolt, and Cursor allow founders to build products faster than ever, without needing to write production-grade code from day one.

This changes the dynamic. Instead of searching for a technical co-founder from day one, nontechnical founders can build, test, and even generate revenue before bringing on a technical lead. And when they do, it’s from a position of strength.

Phil offers this perspective: “It used to be: I’m stuck, and I need a technical person to make me whole. Now it’s: I can already move forward—and I’m looking for someone to help me go further.”

He compares finding a CTO to finding a spouse, it’s not a hire, it’s a partnership. You wouldn’t get married after one interview, and you shouldn’t expect to find your co-founder that way either.

Myth: I can grind it out alone.

Working solo may feel efficient at first, but it can quickly become a bottleneck. You can’t fundraise, build product, talk to users, and sell—all at once. Founders need teammates, collaborators, and community.

That’s one of the strengths of the i-lab. As Phil describes, one of the “superpowers” of the space is the coffee machine—not for the caffeine, but for the opportunity to turn around and ask the person behind you: “What are you working on? How can I help?”

Founders need to talk to each other, share lessons, and build support networks. Isolation may seem productive, but collaboration is where real momentum comes from.