Entrepreneurs: Funding and Values
by Miki Saxon
Sanity is waxing, while funding craziness is waning
This means you will be working even harder than you have been to move your vision forward.
With money getting tighter does that mean you should grab whatever funding available?
Short answer, NO — getting in bed with an investor should signal a long-term relationship, not a hook-up.
Longer answer, NO because…
All angels and seed investors are not created equal and it’s not the difference in money.
It’s the difference in MAP.
Money is only part of what you want from an investor.
Active interest, mentoring and contacts are what your investors should bring.
These are especially important with early-stage investors.
Just as important is a synergy between your values and the values of your initial investors, since values are what underlie your startup’s culture.
For example, if your values include a focus fairness, diversity and social give-back a la Salesforce and your investor’s values are strictly focused on minimizing costs to increase profits the relationship will be rocky, to say the least.
How do you know?
Smart founders do lots of due diligence and talking with founders of previously funded startups, whether they succeeded or failed.
Yes, it’s hard to say ‘no’ when the money is on the table.
But easier if you remember that while refusing funding may slow you down, taking it from the wrong person can kill you.
Flickr image credit: Michael Lehet
