3 ms·
Yes you should take the money if the deal is good and you have a good relationship with the angel. External funding validates you and make you easier to invest
by Charuru 16y ago
Yes you should take the money if the deal is good and you have a good relationship with the angel. External funding validates you and make you easier to invest in in the future.
Also it might give you more opportunities, even if you can't think of ways to deploy the cash now, having that cash will give you ideas.
- michael_dorfman 16y agoI disagree. I would say: take the money if and only if you have a clear idea of how the 100k will accelerate the growth/revenue/profit of your company. Cash without a plan is a big distraction, and will likely throw you off course as you try to think of ways to spend it. If you've achieved a scalable, repeatable business model, great: use the money to accelerate growth. If you've got an idea for a scalable, repeatable business model, but need cash to implement it, great: use the money to do so. If you're still experimenting towards a scalable, repeatable business model, and you've got some ideas on how the money can help you find it more quickly, great: use the money to do so. If none of these apply: turn down the cash, gently and gracefully, and accept all the advice and connections you can get. What is inherently good about bootstrapping is the control it gives you. Investor money comes with expectations and responsibilities and some degree of loss of control. This can be a good trade-off, or not, depending on what you get out of it.
- brudgers 16y ago>"having that cash will give you ideas" Like "I need an Aeron chair."