Investors cannot precisely estimate minimum capital needs
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Argument #1272b723 1 0 2
If it is true that...
Investors often claim they'll only invest if others do so to avoid undercapitalization 1 0 2and
Investors cannot precisely estimate minimum capital needs 1 0 2and
Some founders avoid up-front capital intensive ideas 1 0 2and
Some investors may lack numeracy skills or believe they cannot predict startup outcomes 1 0 2Then it must be true that...
Investors who behave upstandingly should be responded to in kind 1 0 2Mentions
Paul Graham/How to Raise Money
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Related Propositions
Raising seed capital is comparatively easy due to the small amounts of money involved 1 0 2The value of a company is not determined rationally but is essentially a bet on its future success 1 0 2Startups should approach venture capital firms before they run out of money 1 0 2The behavior of investors is often opaque to founders 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 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 2Investors often claim they'll only invest if others do so to avoid undercapitalization 1 0 2Some investors may lack numeracy skills or believe they cannot predict startup outcomes 1 0 2Robust investors can endure some losses without necessarily improving their investing skills amidst increased volatility 1 0 2