Too much funding can kill your startup.
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If you raised too much money and just kept it in the bank, the worst thing it would do is dilute you. It's the *spending* of excessive funding that kills you.
Such excessive spending is, however, almost automatic. Partly because investors pressure you to, and partly because founders overestimate the degree to which they can buy growth.
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Mind explaining why investors might want to push founders to spend more, faster?
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Partly because they believe in the power of money. Partly because they'd look silly if you took their money and didn't spend it. Partly because they want you to need money so they can invest more. Partly because the portfolio effect means they favor kill-or-cure strategies.
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Overvalued company acquisition with market price which currently happening is the clumsy strategy
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What I've read here is that too much capital allows weak people/those who lack discipline/foresight to make bad decisions. This insight can be applied to so many aspects of personal and public life, from toddler nutrition to federal tax policy. Thanks!
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This is INSIGHTFUL!!!
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