The problem is that excess funding begets debt, as small companies strive for breakneck growth to satisfy investors, often drowning themselves in a debt-fueled downward spiral where they’re forced to chase even more investment just to stay afloat. Even big companies like Jawbone and the solar-power startup Solyndra, which raked in hundreds of millions in investment each, couldn’t be saved fro“death by overfunding“
There are plenty of extremely successful bootstrapped companies of that prove chasing the money isn’t the only way to the top. Instead, focus on generating income with a basic product and invest those profits to fuel product-centric expansion. If you do accept funding, do small rounds to avoid dilution and too much liquidity.
Read more … Source : thenextweb