4 ms·

This assumes you believe that investors can't help you succeed in your business. I believe our investors can help us a lot.

• downandout 9y ago
  Fair enough. I was speaking generally. In the case of this specific venture, you may very well turn out to be correct. Good luck with your new business!
  • justin 9y ago
    Thank you! To expand on my point further: the same logic could be used to say entrepreneurs with the means to do so should only pay employees in cash and not equity (because you can afford to do so and believe the equity will have higher economic value ultimately). However, pretty much all seasoned founders I know want to compensate employees with some equity, under the theory that those employees will be more motivated to see the business be successful. I think the same logic applies to your investor base (which is one of the selling points that crowd funding sources like Angel List or Funders Club maintain).
    • jacquesm 9y ago
      > However, pretty much all seasoned founders I know want to compensate employees with some equity, under the theory that those employees will be more motivated to see the business be successful. AKA Golden Handcuffs of the lesser variety.
• gist 9y ago
  What I say is: 'I'd rather have your connections than your money'. As someone who helps investors with some of their investments that is often a missed point. Reviewing your list of investors I've worked with several of them. Knowing exactly who to call to get an answer, advice, or help can be just as important or actually more important than money. Obviously. I remember when an investor approached me many many years ago to buy something that I was selling that the firm wanted. I remember thinking 'I'd rather have access to your connections than your money'.