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Biggest example is Snapchat, they got and keep asking for millions of dollars money when fundraising. Last year's big drama was Secret app's founder taking $6M
by alaskamiller 11y ago
Biggest example is Snapchat, they got and keep asking for millions of dollars money when fundraising.
Last year's big drama was Secret app's founder taking $6MM when they raised $25MM then proceeded to buy fancy cars. The product growth stalled and the company shut down in less than a year.
Happened with Buffer.
- Pyxl101 11y agoThanks for the tip to Buffer. They've published a blog post explaining their reasons that I've started reading: https://open.buffer.com/raising-3-5m-funding-valuation-term-sheet/ https://open.buffer.com/raising-3-5m-funding-valuation-term-... > So you might be wondering, why raise funding if everything is going so well and we’re in full control? Here are some of the reasons: > 1. We’re removing pressure to sell, so we can go all in and keep building Buffer for the next 5-10 years. 2. Setting up a precedent for multiple regular liquidity events for investors and team members. 3. It’s a way to get partners on board who are excited about the unique way we’re running the company. 4. We want to add a little extra cushion to the bank to help us with any speed bumps that might arise [more details on each point in the article] Their reasons make sense to me.
- Asparagirl 11y agoHappened with Basecamp (formerly 37 Signals), too -- they're bootstrapped but they took a small investment from Jeff Bezos so that they could cash out a little bit and enjoy themselves.