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If you’re not willing to walk away, you’re going to pay retail. Good terms happen when you have multiple interested investors, bad terms happen when you don’t.
by paulsutter 8y ago
If you’re not willing to walk away, you’re going to pay retail. Good terms happen when you have multiple interested investors, bad terms happen when you don’t.
That said, investment is difficult if you’re in a place that has few exits (anywhere but Silicon Valley or Beijing/Shanghai). Investors are motivated by the percent chance of an exit, and that chance is higher in the Bay Area than in most places. The chance for exit drops off a pretty steep curve as you go down the “top cities” list (I live in Seattle so apologies to the local scene).
- jwilliams 8y ago> The chance for exit drops off a pretty steep curve as you go down the “top cities” list. Exactly. Which either means you're either: going to get a bad/mixed bag on terms -or- you need to raise in one of those cities as an outsider.
- deleted 8y ago[deleted]
- paulsutter 8y agoRaising as an outsider works just fine if you have traction. As if you don’t, why would you be trying to raise money?