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I need to give credit to my co-founder Dan for coming up with this analogy. I think it's especially potent because while entrepreneurs can lose touch with the v
by drusenko 16y ago
I need to give credit to my co-founder Dan for coming up with this analogy. I think it's especially potent because while entrepreneurs can lose touch with the value of money (eventually, it all just becomes "numbers"), equity always seems to stay near and dear to an entrepreneur's heart.
- dannyv 16y agoHah, thanks. I think I mentioned this years ago. I believe the analogy is most appropriate when a company hasn't yet discovered a solid, profitable business model. When you're in the early, exploratory days of your business, spending cash on non-critical items is literally like spending equity because non-critical purchases (especially extravagant ones) cut down your runway and do not raise the valuation.