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The point of raising funds is to hire people who can accelerate the growth of the business. $200k gets you a person or two, which doesn't do very much. So you f
by joshu 17y ago
The point of raising funds is to hire people who can accelerate the growth of the business. $200k gets you a person or two, which doesn't do very much. So you find yourself raising again pretty much immediately. The fundraising process is a colossal waste of your time.
An entrepreneur going this route is not making good trade-offs.
In my experience, most of these companies fail.
- staunch 17y agoWhat if a product is doing pretty good, but it's not enough to support two founders yet? If they can put all their effort into the company it would accelerate growth (from 25% + 25% to 200% founders). And if that only takes $200k how is that different?
- joshu 17y agoIf $200k is good but $500k is not as good, it smells like a lifestyle business. That's not bad, but it's not a good investment for me.
- deleted 17y ago[deleted]
- bramcohen 17y agoIf $200k is too small to be a worthwhile raise, what do you think of people getting money from Ycombinator?
- joshu 17y agoIf YC were just investing the dollars, it'd be a terrible deal. But it's doing a great deal more.