4 ms·
>>Money is money no matter how stupid the giver is, their money won’t leech value from your company itself. Yeah, this isn't true for a number of reasons. 1)
by knappe 2y ago
>>Money is money no matter how stupid the giver is, their money won’t leech value from your company itself.
Yeah, this isn't true for a number of reasons.
1) The money you accept is given in trade for a percentage of the company and that means influence in the company. That influence almost always comes in the form of board seats which literally drive the direction of the company. I've seen many successful companies do some really stupid things because the investors wanted it that way and it actively hurt the business.
2) Certain investors come with a set of prestige. You're the n a forum which is known for just that.
Who you take money from certainly matters.
- threeseed 2y ago> That influence almost always comes in the form of board seats Most pre-seed and seed investors don't take board seats. And at Series A and above they are putting in enough money where it seems fair enough.