Investor Dilemmas

Ready to start a new business?  Do you have enough money?  The biggest problem in starting any new business is the funding.  Deciding how much you need and where to get that money from is a tough decision.

If you have money to fund your startup, use that!  But, I know that I don’t have lots of “extra” money in the bank to work my business like it needs to be, and maybe you fit into that group to.

Well, enter the Investors!  Wasserman states “To survive and grow, startups need human capital, social capital, and financial capital.”  “Core founders who lack any of these three often try to attract cofounders or hire employees who can provide what is missing.”

The question is who do you borrow money from?  And, what do they want in return?

Have you received funding from investors?  I would love to know how it worked out for you.

Sources:  The Founder’s Dilemmas by Noam Wasserman

October 11, 2016

  • Ideally I would love to have enough money to fund my own startup (when the time comes) and generate enough revenue/profit to continue funding my business on my own. But as you pointed out, at some point in time some extra money may be needed and, as you stated “enters the investors” and questions, such as those you mentioned, must be considered to make an informed decision.

    I think you make like the following read Why I Turned Down
    $5 Million in VC Funding written by Alex Turnbull. Turnbull considered and answered questions on the same line of those you mention and he choose to turn down a 5 million dollar offer from VC

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