If an investor wants to give you money, you take it, right?
ADVERTISEMENT
Entrepreneurs should wait as long as possible to raise money, says a VC who's invested in over 20 companies
On an episode of "So Money," Patrick McGinnis, author of "The 10% Entrepreneur," said smart entrepreneurs delay getting investors as long as they can.
Not so fast, says Patrick McGinnis.
On an episode of Farnoosh Torabi's podcast "So Money," McGinnis, a venture capitalist who's invested in more than 20 companies over the past six years, says it's smarter to wait as long as you can before taking the outstretched dollars.
It's because, he explained, fundraising isn't about cash — it's about control.
ADVERTISEMENT
He credits his friend Beth Ferreira, former COO of Etsy and current managing partner at WME Venture Partners, for pointing that out.
"It's so true," he said. He continued:
"The minute you raise money from somebody else, you now have new people in your company, they may have rights that they can use to affect how you run your business and you have a boss. That can be a very good thing because it can bring discipline to the company, it can bring new ideas and the capital can be invested into growth. But oftentimes, if you're not quite ready, if you don't have quite the right partner, it can create a lot of headaches for you as an entrepreneur."
McGinnis is the author of The 10% Entrepreneur: Living Your Startup Dream Without Quitting Your Day Job
JOIN OUR PULSE COMMUNITY!
ADVERTISEMENT
Eyewitness? Submit your stories now via social or:
Email: eyewitness@pulse.ng
ADVERTISEMENT