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by codingdave 928 days ago
How well do you know your Series A investors?

A long runway, without growth, is a ticking time bomb if VCs are in the picture. Unless you really know and trust your investors... cash out now.

1 comments

Why?
Because VCs are not out to gain a small profit. They are out for large returns, so letting their investment funds stagnate for multiple years in a low-growth, slow-burn environment lacks that potential for a massive return... that is a failure against their investment goals.
Yes that’s the case. But so what? What does that have to do with the company being successful down the line? They also can’t stop a small exit unless they got enough ownership
But they've already invested in series A. Is the concern that those same investors won't be interested in series B?