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Other signals to look for is your company's inability to raise a round. This is an important one, typically rumors will circulate internally regarding financing
by justinzollars 6y ago
Other signals to look for is your company's inability to raise a round. This is an important one, typically rumors will circulate internally regarding financing. Not being able to raise a round is a signal that says investors, who have made a best effort to judge your company's books have decided your company is not a good investment. Those investors will have been provided a balance sheet that you typically will not have access to. So pay careful attention to this signal.
- Cthulhu_ 6y agoThat only applies to the small percentage of companies that isn't profitable and that still relies not only on investor money, but on fresh financial injections to keep their head above water. Most companies aren't like that. A lot of software companies will continue to generate income as well, due to having recurring income like subscriptions and licenses.