Yeah, not only does it prevent most exits, but it also realistically prevents you from passing through all the income to the founders. Investors aren't going t

Yeah, not only does it prevent most exits, but it also realistically prevents you from passing through all the income to the founders. Investors aren't going to sit around and let you do that; usually they are going to basically insist you put most of the profits back into the business, probably by hiring more people. By the article's logic you should have a CEO that spends all their time trying raise money, thus living up to the raise as much as you can mantra. That is just ridiculous advice for an Internet startup that can (a) be run to tens of millions of users by a handful of people on little money and (b) is often in a situation where having more capital won't help acquire users. Additionally, raising money is usually a huge distraction, significantly dilutes your equity, and generally makes the dynamics of your business more complicated (dealing with the new investors who are probably now on your board). You really should only go through this process is you have a very specific need and plan for the money.