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by seek3r00 2206 days ago
The problem I see with raising money is that, practically, you’re giving away your business a piece at a time.

Sure, by raising money you’re going to grow your business more easily, but you’ve also compromised your ownership of it.

Obviously, if all you think about is cashing out after the company’s IPO, raising money makes sense. Especially, if you don’t have a sustainable business in the first place, and you’re losing money.

1 comments

Businesses need capital for a variety of reasons. CapEx, money to buy growth where CLTV>CAC but CAC is still a big number, or maybe your competitor just raised a 30MM and you don’t want to get crushed when they operate at a loss to drive out smaller players, maybe you need to hire a sales team, etc.

It’s not a personal decision to raise or not. It’s dictated by the competition you’re facing.