[55555]

moz.com is a good example of raising bad money. They had an excellent core product and thus a business worth millions, then raised money to try to take over the world. It turns out they couldn't take over the world, so now all they have is the same core product and business they had prior to raising money, except now they also have dozens of millions of dollars of VC preference in the event of an acquisition.

I've toyed with the numbers in my head and I can't make them work; I think they would have been much better off not raising any money.

(I'm just an outside observer.)

[shostack]

Not to mention stress that crippled the founder Rand.