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Investors understand that projections are fantasies and risk is present: do not worry about them. You are only truly forced to do things as a company if you los
by contingencies 10y ago
Investors understand that projections are fantasies and risk is present: do not worry about them. You are only truly forced to do things as a company if you lose decision making power due to reduced voting rights. To avoid this situation, there are numerous strategies available many of which are outlined in the book Venture Deals.
- jasim 10y agoThanks very much!
- neom 10y agoI would caution that the poster has maybe never raised over $5-10MM. This is a very early stage mentality and does not jive with investors as partners, certainly, there is truth in it, but it's not the crux.
- contingencies 10y agoI agree that this is not an attitude to take to the detriment of partnerships. However, as an antidote to worrying about potential future demands in lieu of focusing on business development, it is an available and effective if perhaps heavy-handed mental modeshift! FYI: Our next round is $10M and we are oversubscribed, but I do not claim to be an expert at raising or anything else for that matter.
- neom 10y agoTotally fair.