TLDR:
Raising too much capital too early is a common mistake made by founders, according to a VC. This can lead to dilution, lack of focus, hiring the wrong people, attracting the wrong investors, higher expectations, and lower future valuations. The key is to focus on fundamentals, raise what is needed, and have a clear strategy.
Article Summary:
A VC explains in this article how raising too much capital too early is a common mistake made by founders. The article highlights the consequences of this, such as dilution, lack of focus, hiring the wrong people, attracting the wrong investors, higher expectations, and lower future valuations. The VC emphasizes the importance of focusing on fundamentals, raising only what is needed, and having a clear strategy to avoid these pitfalls. Building a successful company requires discipline, focus, and a healthy dose of scrappiness, according to the VC. By following these principles, founders can increase their chances of success and avoid common pitfalls in the early stages of their startup journey.
