You may have a difficult choice to make – a lower valuation or more structure on your cap table. It’s critical that you understand two things.
There are four common pitfalls entrepreneurs fall into while raising venture capital. Here are a few tips on how to avoid them.
Issue #5: Founders who raise capital in difficult conditions must not fear the down round. It can be a worthwhile tradeoff to keep your startup alive.
Issue #4: Even as you hit your key milestones and carefully manage your runway, events outside your control constantly move the goalposts.
Issue #3: Choosing your venture investors is one of the most important decisions you’ll make as a founder. Relationships last for years. Don’t settle.
Issue #1: The Pivot to Profitability puts the founder back in control of their destiny.