Startups should approach venture capital firms before they run out of money
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Paul Graham/How to Start a Startup
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Startups often require funding from investors 1 0 2Startups should spend their investment money wisely, as running out of money is a common cause of failure 1 0 2Startups that raise money usually do it more than once 1 0 1When raising money, a startup should focus its whole attention on it so it can get done quickly and get back to work 1 0 2Before talking to investors, startups need to be introduced to them 1 0 2The amount a startup should raise depends on the startup's needs, not on the amount investors are willing to invest 1 0 2A startup will be in a much stronger position if it can make it to profitability without raising any additional money 1 0 2Startups should approach fundraising in phases 2 and later by taking the best of the options in front of them right now 1 0 2Investors may pressure founders to stop raising money until they commit to them 1 0 2If milestones are not achieved before funding depletes, the startup will fail 1 0 2