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He said that investors pressure you to run at a loss so they can plow more money in and grab more equity. Sounds like a bit of a conspiracy theory, but I'm curr

• danssig 15y ago
  That doesn't sound like a conspiracy theory. What is with the desire to paint everything in the ridiculous. It sounds like a good way to make more money, though risky.
• webwright 15y ago
  Do you have cash in the bank? Are you running neck and neck with competitors? Are you leaving growth on the table? Could you survive 100% loss for a few months? When you take outside money, there is an implicit commitment to growth and risk. If you're playing it safe and your competitors are outpacing you, it's fair for you investor to push. But at 30% growth MONTHLY (which is insanely good), you can probably comfortably push back. But if there are obvious investments that could accelerate growth, you should consider making them at the expense of month to month profit (if you have the cash to do it). If you don't have the cash, you should consider raising money (at good terms) so that you have the ability to make this choice. Good read on startups and profitability here: http://www.bothsidesofthetable.com/2011/12/27/should-startups-focus-on-profitability-or-not/ http://www.bothsidesofthetable.com/2011/12/27/should-startup...