New book says startup failure is preventable, not inevitable

Bryan Eckert and Kent Kubie, founders of Kubie Kai Consulting, say in their new book that many startup collapses come from capital not being governed tightly enough. The book argues for milestone-based funding and a stronger link between spending and accountability.

Why it matters: - The book argues that startup failure is often a governance problem, not bad luck. - If investors fund in stages and tie capital to milestones, founders and boards may catch problems early enough to change course. - The authors say the industry’s default assumption that most startups fail can blur the line between unavoidable risk and preventable collapse.

What happened: - Bryan Eckert and Kent Kubie, founders of Kubie Kai Consulting, released Wasted Capital. - The book builds on years of postmortems on failed startups. - The authors say capital should be forced to prove itself like a force in nature. - The book is available now at wastedcapital.ai.

The details: - The book frames capital in three states: untouched cash is potential, money spent with a clear purpose is kinetic, and money spent without a defined outcome decays. - Eckert and Kubie argue that most startup failure is “decay” that went unnamed in time. - The authors say venture culture has normalized the idea that most startups will fail. - The book describes “that’s venture” as a phrase that can shut down hard conversations before they start. - One central recommendation is staged funding instead of lump-sum checks. - Under that model, each investment tranche would be tied to a specific milestone. - If a milestone is met, the next check is released. - If a milestone is missed, funding stops so the team can adjust before more capital is lost. - The authors say the model can preserve ambition without forcing a fund-wide rewrite. - The book says founders bear personal costs from failure through reputation, savings, and sometimes a home. - Investors, by contrast, may record the loss as one line in a portfolio and move on.

Between the lines: - The book is a critique of venture norms as much as a startup handbook. - Its core claim is that accountability changes behavior when capital is treated as something that must earn continuation. - The authors’ framing suggests that some “failed” startups may have been rescued earlier with tighter governance.

What's next: - Eckert and Kubie are positioning the book as a framework for founders, investors and boards. - The authors also speak on venture accountability, board psychology and capital strategy. - Their broader message is that money follows rules, not luck, and startup systems should be designed around that premise.