Allison MaslanCEO & Business Scaling Expert | WSJ Bestselling Author

June 12, 2026

12 Jun 2026 · 1 min

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Allison Maslan warns that new funding rounds amplify existing problems rather than solve them. MoviePass burned through cash subsidies without fixing its broken subscription model. Fix your core business first, or more money just makes the leak bigger.

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They told you the next round of funding will solve your problem. It will not. It will scale the problem. Take the company MoviePass. They burned through hundreds of millions of dollars subsidizing $9.95 monthly subscriptions and then turning around and paying full retail price to theaters. They weren't solving a business problem. They had a model problem. So if your operation is leaking at $3 million, you better believe it's gonna leak harder at $30 million. The investors do not save you. Now, I'm not saying that they're never necessary. Necessary or helpful, but in a lot of cases, they add weight. And what scales a real company, it's not the fuel, it's the better engine. So fix the engine first, the fuel comes when the engine is ready for it. And save this and share it with any CEOs you care about, and then follow me for more CEO scaling strategies.