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Because the founder would be spending all of their time reselling the investors every week. I don’t want an entrepreneur spending their weekends looking for job

• anovikov 8y ago
  That's interesting, so you see convincing someone paying say $10,000 a week as long as he sees progress as good, slowly exchanging it for stock at a set valuation, as harder than shelling out $2M out of the pocket in one bulk amount? I have experience of the former (well, it was more like $5K in my case) and it wasn't hard at all, i struggle to imagine myself raising $1M at once. $5K a week sounds like too little, but as far as hiring coders go, as i am in East Europe, it's like $10K in West Europe or $20K in the Valley, not insignificant. Maybe that's just shyness/psychological barrier? I struggle to imagine myself saying someone 'give me a million bucks and we'll build this cool thing and get rich', but asking for 'decent salaries for these good guys and myself, so we don't have to go to Upwork, plus covering our AWS costs' is whole lot easier for me, and it works.
  • rdlecler1 8y ago
    Yes, terrible idea. I wouldn’t back a startup under those conditions. And what if there are multiple investors? Now you have to be schmoozing them up all the time. As an investor you make a bet on a team to execute. If you’re not comfortable making that kind of bet then maybe you shouldnt be backing a team that you only trust with one month of runway. I can tell you, that you’d be the last investor that an entrepreneur would go to for funding — which would mean that you get the worst deals.