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> It doesn't make sense for an investor to put in $10 million if you haven't even put in $10 thousand. That's not always the case, and it depends on the situat
by pejrich 10y ago
> It doesn't make sense for an investor to put in $10 million if you haven't even put in $10 thousand.
That's not always the case, and it depends on the situation. If a startup founder is working for no salary and focusing fulltime on the startup, then money might be better in their pocket, than in the company. $10k could by the founder 6months working at the company. Sweat equity and opportunity cost are also important to consider. Just because a founder hasn't put up cash, doesn't mean they aren't also committed and taking a risk.