5 ms·

Why do you think that?

• joshu 16y ago
  The point of raising funds is to hire people who can accelerate the growth of the business. $200k gets you a person or two, which doesn't do very much. So you find yourself raising again pretty much immediately. The fundraising process is a colossal waste of your time. An entrepreneur going this route is not making good trade-offs. In my experience, most of these companies fail.
  • staunch 16y ago
    What if a product is doing pretty good, but it's not enough to support two founders yet? If they can put all their effort into the company it would accelerate growth (from 25% + 25% to 200% founders). And if that only takes $200k how is that different?
    • joshu 16y ago
      If $200k is good but $500k is not as good, it smells like a lifestyle business. That's not bad, but it's not a good investment for me.
      • deleted 16y ago
        [deleted]
  • bramcohen 16y ago
    If $200k is too small to be a worthwhile raise, what do you think of people getting money from Ycombinator?
    • joshu 16y ago
      If YC were just investing the dollars, it'd be a terrible deal. But it's doing a great deal more.