Identify three major risks for early-stage startups and provide mitigation tactics.

Identify three major risks for early-stage startups and provide mitigation tactics.

• A. Operational risk is irrelevant; focus only on marketing risk and regulatory risk.
• B. Market risk cannot be mitigated; push forward regardless.
• C. Market risk should be mitigated with customer discovery; operational risk with SOPs; financial risk with cash buffers and staged funding.
• D. Financial risk is the sole determinant; secure funding first and assume market will follow.

Answer: (C)