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Don’t raise money if you don’t know how you would use it. VCs are asking for a piece of what you built. If you decide to give it to them, you’d better get somet
by liamcardenas 8y ago
Don’t raise money if you don’t know how you would use it. VCs are asking for a piece of what you built. If you decide to give it to them, you’d better get something that you really need in return.
Don’t accept money just because other people do. Don’t accept money out of fear (i.e. what if competition has money). Don’t rush into a deal without understanding the terms.
If you believe that not having money will be a bottleneck for your venture in the near future, then it is a good idea to accept investment. Since you are in a position of strength, it’s worth finding good investors and structuring a favorable deal. If money will just make things slightly more convenient/comfortable, it will be worth just pushing through without it.
Just my 2 cents.
- cik 8y agoEven then you don't necessarily accept money. Bottlenecks aren't necessarily bad, unless they impact revenue - and of course depends on the business. At certain scales you can easily get the bank to loan you 1x revenue, for a heck of a lot less than equity is worth. The value of VC, and investors in general is about more than just capital. If you just value the capital, you're going after a short term goal - and VC probably isn't the way to get there. The relationships, advice, the deep connections - those are all reasons to VC, but not just cash.