Fuel, or fool?

Every founder wants to pour fuel on the fire—but what if your startup’s “engine” is actually a leaky bucket duct-taped to a lawnmower?

In this episode, JDM and Cameron unpack the seductive myth that early traction equals readiness to scale, and why raising money too soon often leads to burning cash and good will in equal measure.

Instead of celebrating vague signs of growth, they roast three startup pitches with solid-sounding topline numbers… and funnel stories that fall apart faster than a no-code MVP on launch day.

Along the way, they dish out six possible diagnoses for premature scaling—including the dreaded “Retention Trap,” the ego-driven “Founder Mirage,” and everyone’s favorite delusion: the “Fake CAC.”

In This Episode

• Why “raising to scale” is a terrible idea if you haven’t proven anything scales

• The key difference between early traction and repeatable, scalable traction

• How to sniff out vanity metrics that mask churn, chaos, or founder insecurity

• Six common failure modes for startups trying to raise before their funnel’s functional

• JDM’s rage rating scale (unofficial, but very real)

Startup Scenarios Reviewed

1. The Paid is Working Pitch

   $6K MRR, 15% MoM growth, $80 CAC, but 30% monthly churn. Founder wants to 10x ad spend and raise $1.2M.

   Diagnoses: Leaky Funnel + Retention Trap

   Takeaway: Scaling a broken funnel doesn’t fix it—it multiplies your losses.

2. The Enterprise Mirage

   AI tool for internal comms, 2 unpaid pilots, 3 unsigned LOIs, no revenue, and a $2M raise ask.

   Diagnoses: Founder Mirage

   Takeaway: If your whole plan is “we’ll charge once we have X,” you’ve built a startup on fantasy, not evidence.

3. The Founder-Led Sales Trap

   $12K MRR, warm intros, good demo conversion—but no repeatable funnel. Wants $1.8M to scale top-of-funnel and outbound.

   Diagnoses: Fake CAC + Burn Rate Blender

   Takeaway: Founder-led sales ≠ product-market fit. Scale the funnel before the team.

Frivolous Thoughts

• JDM is obsessed with Severance (Apple TV), calling it masterclass-level world-building with cult-level brain hijacking

• Cam recommends Better Sisters on Prime: a murder mystery wrapped in family drama with “rewatchable reveal” energy

Bonus shoutouts to loyal listeners Lisa from Heirloom Explorer and Sylvia from Gondo Fusion — thank you for putting up with us every week!