[alasdair_]

> I'm not sure in what universe an unfavorable round is worse than insolvency.

It’s worse in any universe where the choice is between insolvency now and insolvency later, because “later” can mean wasting a lot of time and burning bridges with investors that may end up funding your next business instead.

[xyzzy_plugh]

I chuckled at this. If it's a waste of time for you to be paid and to pay your employees...

If you think what you're doing is a waste of time, you can always leave. If it's your company, you can forfeit your shares. Why throw everybody under the bus? This is wildly irresponsible.

And burning bridges... I've never heard anything so funny. As if the feelings of investors ever really matter.

It takes a special type of entrepreneur to burn a bridge by taking an investor's money. Snubbing an investment is one thing, but taking an investment and using it as intended in good faith should never result in a burned bridge. Investors are typically understanding of changes in the market. It takes a party acting in bad faith, in which case not doing business with them in the future is reasonable, but that truth is applicable generally.

[alasdair_]

If you are certain that you are going to fail then it’s absolutely in bad faith to raise more money and it’s absolutely a waste of time for everyone involved.