Why Millions in Funding Isn’t Always Good
May 18, 2009 by Stephen Kersey
Filed under Business
A lot of startups believe that the more funding you can get, the better. It’s not uncommon for startups to go after millions of dollars (if not tens of millions) in hopes of creating a successful startup company.
However, those experienced in the startup world will tell you funding is not always healthy for a startup. Here are four reasons to think twice:
1) Wasted Energy
Getting funding for a startup company is a whole lot of work. Sometimes, that effort could be better utilized by the startup itself.
2) Too Many Chiefs
Once you get funding, you’ll have a lot of people with hands on the steering wheel. That can slow down the company’s mobility.
3) Loss of Power
If you get funding, chances are that your power as the founder of a startup business will be partly, if not totally, lost.
4) Customers Lost in the Shuffle
Many startups with a lot of funding find that they are working to make the investors happy rather than making their customers happy.
Remember: Funding has Strings Attached (Image: Flickr)
