Warning: Use of undefined constant referer - assumed 'referer' (this will throw an Error in a future version of PHP) in /usr/home/essaywo/public_html/essays on line 102

Warning: Use of undefined constant host - assumed 'host' (this will throw an Error in a future version of PHP) in /usr/home/essaywo/public_html/essays on line 105

Warning: Cannot modify header information - headers already sent by (output started at /usr/home/essaywo/public_html/essays:102) in /usr/home/essaywo/public_html/essays on line 106

Warning: Cannot modify header information - headers already sent by (output started at /usr/home/essaywo/public_html/essays:102) in /usr/home/essaywo/public_html/essays on line 109
How To Raise Money? - College Essay

How To Raise Money?

Most startups that raise money do it more than once. A typical trajectory might be (1) to get started with a few tens of thousands from something like Y Combinator or individual angels, then (2) raise a few hundred thousand to a few million to build the company, and then (3) once the company is clearly succeeding, raise one or more later rounds to accelerate growth.

Reality can be messier. Some companies raise money twice in phase 2. Others skip phase 1 and go straight to phase 2. And at Y Combinator we get an increasing number of companies that have already raised amounts in the hundreds of thousands. But the three phase path is at least the one about which individual startups' paths ...

Want to read the rest of this paper?
Join Essayworld today to view this entire essay
and over 50,000 other term papers

only seems a puzzle because it's an alien world to most founders, and I hope to fix that by supplying a map through it.

To founders, the behavior of investors is often opaque—partly because their motivations are obscure, but partly because they deliberately mislead you. And the misleading ways of investors combine horribly with the wishful thinking of inexperienced founders. At YC we're always warning founders about this danger, and investors are probably more circumspect with YC startups than with other companies they talk to, and even so we witness a constant series of explosions as these two volatile components combine. [1]

If you're an inexperienced founder, the only way to survive is by imposing external constraints on yourself. You can't trust your intuitions. I'm going to give you a set of rules here that will get you through this process if anything will. At certain moments you'll be tempted to ignore them. So rule number zero is: these rules exist for a reason. ...

Get instant access to over 50,000 essays.
Write better papers. Get better grades.


Already a member? Login

proportion of successful startups raise money that it might seem fundraising is one of the defining qualities of a startup. Actually it isn't. Rapid growth is what makes a company a startup. Most companies in a position to grow rapidly find that (a) taking outside money helps them grow faster, and (b) their growth potential makes it easy to attract such money. It's so common for both (a) and (b) to be true of a successful startup that practically all do raise outside money. But there may be cases where a startup either wouldn't want to grow faster, or outside money wouldn't help them to, and if you're one of them, don't raise money.

The other time not to raise money is when you ...

Succeed in your coursework without stepping into a library.
Get access to a growing library of notes, book reports,
and research papers in 2 minutes or less.


CITE THIS PAGE:

How To Raise Money?. (2014, January 2). Retrieved March 29, 2024, from http://www.essayworld.com/essays/How-To-Raise-Money/103512
"How To Raise Money?." Essayworld.com. Essayworld.com, 2 Jan. 2014. Web. 29 Mar. 2024. <http://www.essayworld.com/essays/How-To-Raise-Money/103512>
"How To Raise Money?." Essayworld.com. January 2, 2014. Accessed March 29, 2024. http://www.essayworld.com/essays/How-To-Raise-Money/103512.
"How To Raise Money?." Essayworld.com. January 2, 2014. Accessed March 29, 2024. http://www.essayworld.com/essays/How-To-Raise-Money/103512.
JOIN NOW
Join today and get instant access to this and 50,000+ other essays


PAPER DETAILS
Added: 1/2/2014 11:20:39 AM
Submitted By: daasheesh
Category: Economics
Type: Premium Paper
Words: 10686
Pages: 39

Save | Report

SHARE THIS PAPER

SAVED ESSAYS
Save and find your favorite essays easier

SIMILAR ESSAYS
» How To Raise Money For Startin
» How To Start A Billiard Club Bu...
» To Kill A Mockingbird
» Woman In Society
» Sexual Harrassment: We Need To ...
» How To Change A Flat Tire
» Report On The Costs And Benefi
» Vargas of Brazil and Peron of A...
» Terry Fox
» How Far Did The Policies Of Ol
Copyright | Cancel | Contact Us

Copyright © 2024 Essayworld. All rights reserved