Tuesday, December 27, 2016
Lessons Learned Seeking Funding - In the early days, don't rely on just one or two investors for all your capital.
Here's why. Sooner or later, lots of deals need more money than their management originally thought. In those situations, it is much easier for all involved to raise that additional cash from, say, six to ten investors than it is from just one or two. If you have just a couple of investors, and they turn you down for more money, then you have to 1] go to newer investors, who will know you are in a tight spot, and 2] figure out how you're going to dilute the ownership of the investor(s) already in the deal. It won't be fun.