Some startups that fail initially look like they'll be giant successes. That's because they're able to drum up a ton of traffic or users very quickly, and early adoption can be a sign of a lasting product. It's also easiest to attract investors when a company is in hyper-growth mode. Sometimes, those high traffic numbers are fleeting; they're uncontrollable gifts from a big source like Facebook that can be taken away. Other times, startups use tricks to inflate growth and attract investors, but they're usually unsustainable.
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To read the original article: Why Some Startups Fail Shortly After Raising Tons Of Money - Business Insider
