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It is important to note that in the startup community it is generally a good tactic to raise money when you don't need it, because that gives you enormous lever
by argonaut 13y ago
It is important to note that in the startup community it is generally a good tactic to raise money when you don't need it, because that gives you enormous leverage in the negotiation. If, on the other hand, you're in a negotiation where the other side knows you need the money, you are going to get much worse terms.
- yesplorer 13y agoThis holds true when you are building a product where you'll potentially need money to scale but you know that though you are growing rapidly, your current infrastructure be enough for a while. There, you can raise money against the future. But this is snapchat. Don't expect them to become another Facebook, don't expect them to become another twitter. Because they've already defined their use case, which is simple and straight forward so why $100m?