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> Importantly, with eight months of runway, Groove didn’t need the money. Geeze, stop right there. If you need the money, IT IS TOO LATE. You get money becau
by danielweber 13y ago
> Importantly, with eight months of runway, Groove didn’t need the money.
Geeze, stop right there.
If you need the money, IT IS TOO LATE.
You get money because you can use it, not because you need it.
Sorry if this comes off as a rant. I was at a dysfunctional start-up once and I guess it comes out at odd times.
- mwilcox 13y agoIt's a case of need to grow vs. need to survive
- frandroid 13y agoAlso: If you need the money, you're going to get fucked in the negotiation. You should be able to walk away from an investor who talks to you, otherwise they'll use your desperation against you and dilute the hell out of you.
- michaelt 13y agoThere's a distinction between "need the money" as in "cannot achieve the business plan without investment" as compared to "running out of runway can't meet payroll" For example, if you need $$$ to build a nationwide network of warehouses, or to get your new electric car through safety testing, or as a bond for your new bitcoin bank's banking license, or to order the first batch of widgets from your manufacturer, you "need the money" because you can't achieve your business goals without it, but you aren't in a desperate hurry and you can shop around. If you need the $$$ to meet payroll and keep the lights on and the rent paid, but your business plan basically calls for you to keep doing what you're doing, you probably don't have a lot of time to shop around for investors. If you're not in either of those categories raising more capital now is optional, and you've got to consider whether it's worth what you'll have to pay for it.