4 ms·
Not so much sunk cost as raised stakes. VCs don't regularly pour money into companies that are struggling, but they will richly fund startups that have shown ea
by replicatorblog 10y ago
Not so much sunk cost as raised stakes. VCs don't regularly pour money into companies that are struggling, but they will richly fund startups that have shown early spark of success for the slim chance that they can make it massive.
- CalChris 10y agoAgreed. The article says from a founder's POV that every dollar you spend is a dollar of dilution. From a VC's POV, every dollar they invest is percentage. If a company is doing well, they want to increase that percentage whether the company needs the money or not.