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"Whenever a company takes on VC investment, there are certain expectations attached to it. It depends a lot on which fund invests on the company, but more often
by annnnd 10y ago
"Whenever a company takes on VC investment, there are certain expectations attached to it. It depends a lot on which fund invests on the company, but more often than not, with this investment comes the expectation that you have to spend the money as quickly as possible in order to grow, and once you have spent it, you’ll have to ask for more money again so that you can keep on spending it, and so on and so forth. All this is necessary to create this illusion of value, importance, and relevance needed to maintain outrageous valuations."
This is something all entrepreneurs who are looking for investments should really understand. VC money dictates huge growth and this is not suitable for all business opportunities. For some viable businesses taking VC money is akin to signing their own death sentence.