4 ms·
> Nothing wrong with family funded business but if after 18 years the 'dad' is the major shareholder it's a bad sign they were not able to raise much outside ca
by hvidgaard 8y ago
> Nothing wrong with family funded business but if after 18 years the 'dad' is the major shareholder it's a bad sign they were not able to raise much outside capital.
Or they didn't have a need to. Why depend on other peoples money if you're fine without?
- sonnyblarney 8y agoBecause family rounds would have been earlier, and typically want less risk. Also, there are almost 0 companies that can do just as well with $10M as they can with 100. More money is a powerful sign of momentum, and it generally increases valuation. So sure, maybe $50M is enough and 'more' just comes on worse terms ... but a small company avoiding going past Round A ... it's far more likely they just couldn't raise.