Raising funding can have the same effect as winning the lottery.
Those who raise funding are both exhausted and exuberant. It’s a big win for the team and promises a brighter future for the company. Just like the lottery, the sudden inflow of cash can change one’s perspective.
Be careful to keep your spending in line during the times you are flush.
A leading angel investor once said, “The IQ of a startup is inversely proportional to the size of their bank account.”
Stick to your plan and don’t let the influx of cash lead into mission creep or overpaying for standard services.
Stick with your original goals and don’t let the funding change your spending.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.
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Copyright (c) 2020, Hall Martin and investorconnect.org. All rights reserved.
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.