Treat investors as saying no until they unequivocally say yes, in the form of a definite offer with no contingencies
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Argument #463bfa58 1 0 2
If it is true that...
Before talking to investors, startups need to be introduced to them 1 0 2and
Treat investors as saying no until they unequivocally say yes, in the form of a definite offer with no contingencies 1 0 2and
Always know where you stand with an investor by looking at their actions rather than their words 1 0 2Then it must be true that...
It's not a deal until the money is in the bank 1 0 2Mentions
Paul Graham/How to Raise Money
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Related Propositions
The behavior of investors is often opaque to founders 1 0 2Always know where you stand with an investor by looking at their actions rather than their words 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 2Underestimating the amount you hope to raise sends useful signals to investors 1 0 2If you're raising money from many investors, roll them up as they say yes 1 0 2Significant growth between two investor meetings makes investors eager to close, while flat or decreasing numbers can cause investors to get cold feet 1 0 2Good investors don't lead startups on; their reputations are too valuable 1 0 2An investor who's seriously interested will already be working to help you even before they've committed 1 0 2Investors may pressure founders to stop raising money until they commit to them 1 0 2Investors are professional negotiators and can negotiate on the spot very easily 1 0 2