Why Too Much Capital is Bad
from the give-me-less-money-please dept
Guy Kawasaki wrote the following article for Business 2.0 explaining why raising too much capital has dangerous consequences. For the most part I think I agree with him. The one additional reason I'd add is that it makes startups act like big companies. Half the reasons startups are successful (okay plus or minus a few percentage points) is they figure out how to do something in a different way than the big company. Often that comes from not having all the resources, and having to be innovative and creative to come up with a new way of doing business. Money makes it much easier to do things the old way. On the other hand though, no money makes doing anything pretty difficult. Fine line...
Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.
While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.
–The Techdirt Team
Reader Comments
Subscribe: RSS
View by: Time | Thread
hey
[ link to this | view in chronology ]