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A more succinct, cynical take: anyone who sells money for equity is always going to be happy to see you need more money. (The author dances around this, for un
by carsongross 10y ago
A more succinct, cynical take: anyone who sells money for equity is always going to be happy to see you need more money.
(The author dances around this, for understandable reasons.)
- deleted 10y ago[deleted]
- akharris 10y agoI understand the cynical take, but having worked with a lot of investors, I don't think it's the dominant reason. If at all possible, investors would rather own a smaller piece of something huge than an ever increasing share of something small. This is actually something you can use when negotiating if someone tells you "I need 20%." Really, they need a big return on their invested dollars. The exact % is just a rule of thumb based on the overall returns they expect from their investments in the context of the entire portfolio.
- rhizome 10y agoSo maybe the higher the ask%, the lower their faith in the company?