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It's not just getting a return on investment. They also want to pressure you into a position that will require you to come back to them for money. Each new rou
by jjeaff 5y ago
It's not just getting a return on investment. They also want to pressure you into a position that will require you to come back to them for money.
Each new round of fundraising is a chance for them to significantly increase their ownership in the company. They must get you to spend money just a bit faster than you are making it, or else you won't need then anymore after the early rounds.